Market Blog > November 2016 > Market Review

Market Review

Japan's top currency diplomat pointed at Tokyo's readiness to intervene in currency markets with the safe-haven yen soaring as Republican Donald Trump closed in on winning the U.S. presidency. The National Bureau of Statistics (NBS) said that China's producer prices jumped more than expected by 1.2 percent on-year, the fastest pace since December 2011, after turning marginally positive in September for the first time in nearly five years.

The European Commission announced that Euro zone growth will slow next year because its main driver, domestic demand, will decrease as a result of a possible rise in energy prices, while inflation is likely to rise. ECB executive board member Peter Praet said that the European Central Bank must be calmer than the market after the observed volatility following Donald Trump's election as U.S. president.

According to market participant’s opinions, Donald Trump's victory in the U.S. presidential race increases doubts in global financial markets that the Federal Reserve will raise interest rates soon and follow with further gradual hikes over the coming years. In a report, US Census Bureau said that U.S. wholesale inventories rose less-than-expected in the last quarter to 0.1%, from 0.2% in the previous quarter.
 
Currencies: The dollar was steady against the other major currencies, as the greenback recovered from sharp losses posted following news Donald Trump had been elected President of the United States. The EURUSD traded lower between $1.1300 and $1.0923. The GBPUSD traded higher between $1.2355 and $1.2548. The USDJPY traded higher between ¥101.19 and ¥105.12.

Crude Oil: U.S. crude inventories rose more than expected in the latest week, still much lower than the huge rise of 14.420m barrels the previous week. On the ICE future Exchange, North Sea Brent crude traded higher between $44.41 and $46.95. On the New York Mercantile Exchange, U.S. light crude oil traded higher between $43.10 and $45.95.

Gold: Gold prices soared nearly 5% during early hours as Donald Trump shocked financial markets by winning the U.S. presidential election, but soon erased gains in the next few hours. On the COMEX division of the New York Mercantile Exchange, gold traded lower in a broad range between $1337.16 and $1268.02 an ounce.

Indices:  Markets in Asia traded lower as investors digested a possible upset by Donald Trump in the U.S. election. At the close in Tokyo, the Nikkei 225 tumbled 5.36%. At the close in China, Shanghai was down 0.66%.

European stocks were mostly higher as Donald Trump won the presidential race and initially affected markets negatively, but early losses were erased at the end of the European trading session. At the close in Frankfurt the DAX gained 1.56%. At the close in Paris, the CAC40 added 1.49%. At the close in Madrid, the IBEX 35 lost 1.16%. Finally, at the close in London the FTSE100 climbed 1.00%.

A wildly volatile market ended to the upside for the major U.S. averages. At the close, the Dow Jones industrial average added 1.39%. The S&P 500 gained 1.09% and the NASDAQ composite rose 1.11%.
 
Economic Calendar
Thursday 10th November 2016:

Time

Currency

Impact

Events

Forecast

Previous

13:30

CAD

 

NHPI m/m

0.20%

0.20%

13:30

USD

 

Unemployment Claims

267K

265K

14:15

USD

 

FOMC Member Bullard Speaks

 

 

10th-12th

USD

 

Mortgage Delinquencies

 

4.66%

Posted: 11/10/2016 7:40:22 AM by Global Administrator | with 0 comments


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