Market Commentary – November 16, 2021

Kevin Jock

16th November 2021

Stocks on Wall Street ended a choppy trading session little changed on Monday, with several of the year’s high-flying stocks including Tesla and Nvidia sliding in value. Both S&P 500 index and Nasdaq remained almost unchanged for the day. Tesla had fallen more than 5% in morning trading after Elon Musk sparred with senator Bernie Sanders over taxing billionaires, with Musk suggesting he could sell more Tesla shares, it ended the day 1.9% lower.

European equities hit another record peak on Monday after comments from ECB chief Christine Lagarde helped beat back bets of tighter monetary policy, while a fall in miners kept gains at bay. Lagarde said the current inflation spike will be longer than once anticipated but would fade next year, so policy action now would hit the economy just as price growth starts to moderate on its own. CAC 40 index hit an all-time high, rising 0.5% on a lift from Airbus, while DAX ascended 0.34% and clinging an all-time high as well.

Australian shares dropped on Tuesday, pulled down by mining and banking sectors as investors maintained a cautious stance ahead of U.S. retail sales data, with ASX 200 index dropped by nearly 0.6%. Meanwhile, HK’s Hang Seng Index rose by nearly 1% before the mid-day market close.

Brent crude, began retracing earlier losses in the New York afternoon, clawing back from a dip of almost 2% to end the day at $82.43 a barrel. The dollar index rose 0.4% to its strongest level in 16 months, while the British pound faded late in the day, ending roughly flat against the dollar at $1.341.

image_2021_11_16T04_16_59_803Z-1

Figure 1 (Source: IS Prime) Bitcoin Daily : Bitcoin experiences roller-coaster ride, from reaching all-time highs of $69,000 last week, to lows of $60,000 today.

Headliner to Review

  • Both the China Retail Sales and Industrial Production statistics are upbeat, came out to be 4.9% and 3.5% respectively, higher than the market forecasts.
  • Business activity grew strongly in New York State, according to the November 2021 Empire State Manufacturing Survey, with the index climbed eleven points to 30.9. New orders and shipments posted substantial increases, and unfilled orders rose.

Headliner to Watch

  • October UK inflation data will release on Wednesday, which could further fuel bets that the BoE will hike rates at one of its upcoming meetings if CPI rises by more than expected. Forecasts are for annual CPI to hit 3.9%, well above the BoE’s upper limit of 3%.
  • The Canadian CPI is expected to increase by 0.7%, well above last month’s figure of 0.2%.

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