Market Commentary – November 15, 2022

Kevin Jock

15th November 2022

U.S. stocks finished lower on Monday, after a day of choppy trading sessions as the major indices eventually dropped lower towards the end of the day. Both the S&P 500 and Nasdaq indices declined 0.89% and 1.12% respectively. Share price of Amazon dropped 2.28% as the company was planning to lay off 10,000 workers.

European equities also fared better on the day, driven by positive updates from regional companies, as well as the better-than-expected industrial output data eased concerns about the growing threat of recession. The FTSE, CAC 40 and DAX all rose by 0.92%, 0.22% and 0.62% respectively.

In Asia Pacific, majority of regional indices are up today, especially the Chinese equities including both the CSI 300 and HK’s Hang Seng indices, they are both up by 1.32% and 2.88% before the mid-day break. Meanwhile, Joe Biden and Xi Jinping met up yesterday during the G20 summit in Bali, hoping to stabilize the US-China relations.

In terms of commodities, oil price slip in the week after OPEC cut its 2022 global demand forecast, with Brent crude trading at $93.861 per barrel. Bitcoin seems to be somewhat stabilized at around $16K, while the Japanese Yen clawed back its recent losses against the dollar as the currency appreciated significantly to reach 140.

XAUUSD Chart (2022.11.15)

Figure 1 (Source: IS Prime) XAUUSD daily: Price of bullion has rallied strongly in the recent days as it has hovered near three-month highs today, due to mixed signals from the Fed which has kept U.S. dollar downbeat.

Headliner to Review

  • Industrial production increased by 0.9% in September across the eurozone regions, much higher than the anticipated figure of an increase of 0.1%. However, it is not yet the start of recovery as businesses continue to report increase of inventories and lower demand.

Headliner to Watch

  • UK CPI is due to print on Wednesday, looking to hike by 10.7% y/y. It is likely to reach a peak given the electricity and gas prices are now being fixed by the government.
  • Canada will also release its October CPI tomorrow, forecasted to increase by 0.8%.

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Authors:
Kerry Man