Market Update – November 17

Stock markets struggled, and the Hang Seng in particular remained under pressure amid lingering concern over China’s growth outlook and a slump in Alibaba Group Hlds. as the company scrapped a spinoff of its cloud business due to US chip export restrictions.

European futures as well as most US futures are also finding buyers amid growing conviction that central bank rates have peaked in the US as well as Europe, which leaves markets looking for the timing of the first rate cut. Bonds are benefiting and yields continue to trend lower. European futures as well as most US futures are also finding buyers amid growing conviction that central bank rates have peaked in the US as well as Europe, which leaves markets looking for the timing of the first rate cut.

• US data once again, helped treasuries and add to the bullish sentiment that has prevailed most of the month.
• US Dollar slid higher to 104.36, up from recent lows, but still heading for a weekly loss, while Yields down as markets price in that Fed done with hiking.
• Euro strengthens after Tuesday’s significant 1.69% surge. Sterling (-0.23%) dive to 1.2375 post an unexpected decline in UK retail sales.
• AUDUSD & NZDUSD down for a 2nd consecutive day.
• Stocks: The JPN225 managed to dodge the trend and the wider MSCI Asia Pacific Index is still heading for a solid weekly gain. The US500 up +0.15%, US30 slipped -0.13% and the US100 0.07% higher.
• Alibaba Group Holding Ltd.’s (-9%) market value has slumped to only about half that of rival Tencent Holdings Ltd , as company had cancelled plans to spin off its cloud computing unit and paused a push to list its grocery chain.
• Walmart (-8% ) plunging, even after in-line earnings, as more cautionary outlook with D-word (deflation) rattling investors.
• Energy: USOil drop nearly 5% s below key $73 support level, leaving oil on course for a fourth weekly correction.
• Metals: XAUUSD spiked to 1988, set for a strong weekly close.