General Market Analysis – 22/11/24

US Markets Push Higher in Trading – Dow Up 1%

US stocks pushed higher in choppy trading yesterday, with both the Dow and the S&P reaching one-week highs. The Dow led the way, closing up 1.06%, followed by the S&P, which added 0.53%, while the Nasdaq managed a meagre 0.03% gain. Treasury yields rose again, with the 2-year yield up 3.2 basis points to 4.340% and the 10-year yield up 2.4 basis points to 4.430%. The dollar hit a new annual high as the DXY climbed 0.39% to close at 107.03.

Oil prices surged again as concerns over the escalation of the Ukraine-Russia conflict weighed on the market, with Brent up 1.95% to $74.23 and WTI up 2.0% to $70.10. Gold also continued its recovery rally this week as haven buyers pushed it up another 0.78% to $2,969.40.

Bitcoin Within Touching Distance of $100,000

Bitcoin climbed higher in trading yesterday, coming within touching distance of $100,000. The price of the world’s number one cryptocurrency has doubled this year, gaining nearly 40% since the US election. Donald Trump’s embrace of crypto and digital assets during his campaign has benefited the nearly 50 million crypto holders in the US in the weeks following his victory.

Nearly $4 billion has flowed into Bitcoin Exchange-Traded Funds (ETFs) since the election, and analysts predict the current rally could extend further as the new year approaches. Traders expect dips to remain well-supported in the current environment but also foresee increased market volatility as Bitcoin continues to trade in uncharted territory.

Busiest Day of the Week Ahead for Traders

Today could mark the busiest trading day of the week, with data due across all three sessions and central bank heavyweights scheduled to speak. The focus is on Flash Manufacturing and Services PMI data, with updates expected from Australia, the UK, France, Germany, the Eurozone, and the US.

Additionally, the UK is set to release Retail Sales figures, while the US will publish University of Michigan Consumer Sentiment and Inflation Expectations data. Central bank updates are also expected from Swiss National Bank Chairman Martin Schlegel, the German Bundesbank’s Joachim Nagel, and the Federal Reserve’s Michelle Bowman.

Combined with escalating geopolitical tensions stemming from the conflict in Ukraine, today’s events could result in a highly volatile end to the week.

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