Market Commentary – November 9, 2021

Kevin Jock

9th November 2021

Wall Street stocks ended slightly higher on Monday, rising early after passage of the infrastructure spending bill but paring gains late as Tesla slide weighing the benchmarks down. Both the S&P 500 and the Nasdaq extended their run of all-time closing highs to eight straight sessions. Meanwhile, Tesla Inc fell 4.9% following Musk’s Twitter poll on whether he should sell about 10% of his holdings of stock, with the poll receiving more than 3.5 million votes, and 57.9% voting “Yes”.

Strength in commodity-linked sectors helped European stocks inch up to a record high, although broader gains were stifled by some weak earnings and lack of any major market cues. The Euro STOXX 50 index dropped marginally by 0.24%, whilst both FTSE 100 and DAX remained nearly flat in yesterday’s close.

Elsewhere in Asia, Australian shares continue to fluctuate as losses in the financial sector offset early gains among mining stocks after copper prices rose on strong export growth data from China. On the other hand, the Hang Seng Index continue to slide after it opened high in Tuesday morning, trading at around 24,740 points before mid-day close.

Gold price moved higher to settle at around $1823.00. Though dollar weakness is a definite contributor to the gains of the precious metal, inflationary concerns and the central bank’s extremely accommodative monetary policy is seemingly the driving force behind gold’s recent moves. Bitcoin and Ether hit new all-time highs on Monday evening, as Bitcoin price at one point rose above $68,000 , eclipsing a previous record set in late October. These record-breaking moves come amid a wider rally in the crypto market, including the newly launched Bitcoin ETF which was up more than 8% on Monday as well.

image_2021_11_09T03_44_47_154Z

Figure 1 (Source: IS Prime) CC.BTC.USD Daily : Bitcoin break’s previous highs to surpass $68,000 and cement itself as one of the best performing alternative assets thus far this year.

Headliner to Review

  • Unemployment rate in Switzerland came out to be 2.7%, in line with the forecast figures and better than the previous month’s rate of 2.8%.

Headliner to Watch

  • The US October CPI is due to release on Wednesday, expected to hike by 0.6% compared to the actual figure of 0.4% from previous month.
  • Crude Oil Inventories is also due to announce with the previous figure of an increase of 3.3M barrels.

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Authors:
Antony Tan
Kerry Man