Weekly Market Recap: November 8-12
High US Inflation and the relevant rise in US Yields and Fed rate hike bets, were the main themes during this week and the key drivers of market movement, while we also had some high profile companies reporting their quarterly financial results.
KEY DEVELOPENTS
US Inflation surged in October, as measured by the Consumer Price Index (CPI), published on Wednesday. Headline CPI rose to 6.2% y/y against 5.4% y/y in September, while Core CPI rose 4.6% y/y, compared to 4.0% in the prior month.
Earlier in the same day, China's CPI also showed big increase of 1.5% y/y and factory inflation accelerated to 13.5% y/y.
Australia's Employment report disappointed, with Unemployment Rate rising to 5.2% in October and the economy losing 46.3K jobs.
In the UK, preliminary data revealed lower Q3 GDP of 1.3% q/q, compared to 5.5% in the second quarter, while EU-UK dispute over the Irish border, creates fears for trade war.
The European Commission upgraded its 2021 Eeuro area growth forecast to 5.0%, from 4.8% in the summer projections and Inflation is forecasted to peak at 2.4% in 2021, before declining to 2.2% in the next year.
MARKET MOVEMENTS
Hot Inflation boosted the USDollar against its major counterparts. The Euro and the GBP set fresh 2021 lows against the greenback, while AUD and NZD dropped to November lows.
Reflation fears were detrimental for Wall Street as US Indices dropped after last week's rise. Their European peers performed better, as GER30 and FRA40 set all-time highs, and UK100 reached it best levels in more than a year.
At the time of writing USOIL was pressured and heading towards its third losing week, whereas XAU/USD was undeterred by the greenback's strength and posted 5-month highs.
CORPORATE ACTIVITY
This week we saw some high-profile quarterly results, while Disney's stock plunge and Ford's stock $20 milestone were in the spotlight. Read our StockWatch for more details.
WEEK AHEAD (GMT)
Next week starts with Retail Sales and Industrial Production Form China on Monday. Inflation will remain front and center, with CPI readings from the UK, Canada, Eurozone and Japan.
Market participants will also be looking forward to Retail Sales form the US, Canada and UK. On the earnings front, Nvidia, Lucid and Alibaba are some of the companies that will draw attention.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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