Market Commentary: Tuesday 19th November

Stocks had a strong session in Asia, led by a surge in Tesla (+5.6%). Tech and telecom sectors were better bid, while energy and consumer names were softer. This reflects the current theme as markets await further signals regarding President-elect Donald Trump’s planned administration. The replacement for Janet Yellen as Federal Reserve Chair has yet to be announced.

Overnight, the RBA's November 5 meeting minutes reiterated vigilance toward inflation. Board members saw no immediate need to change the cash rate target and do not expect inflation to return sustainably to the central bank's target until 2026. The board agreed to maintain restrictive monetary policy until confident that CPI will return to target.

Domestically, BOE MPC member Megan Greene participated in a Q&A session hosted by LSE in London last night. She hinted that the UK Budget could raise inflation by as much as 0.50% at its peak, making 1.2600 look like a key support level for now.

For the day ahead, Eurozone CPI and US housing starts are on the data docket. On the speaking front, the Fed’s Jeff Schmid is scheduled to speak.

Market Update:

• Bitcoin opens near $92,000
• Ether fell 0.6% to $3,131.78
• The yield on 10-year Treasuries is slightly lower at 4.41%
• Spot gold rose 0.4% to $2,623.39 an ounce
• WTI crude opens at $69.20

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