Concern over CPI data muting the rally 13/11/2028

HOT stories for today

Stocks on the move:

• Cava (CAVA): The fast-casual dining chain surged 14% after delivering better-than-expected earnings and revenue for the third quarter, reporting 15 cents per share on $244 million in sales.
• Spotify Technology (SPOT): Shares of the music-streaming platform rose 8%, driven by a strong quarterly performance. The company reported 640 million monthly active users in Q3, an 11% increase year-over-year.
• Rivian Automotive (RIVN): The electric vehicle maker climbed 5% after announcing a $5.8 billion partnership with Volkswagen Group. The collaboration will integrate Rivian’s software and electrical systems with Volkswagen’s models.
• Rocket Lab (RKLB): The space launch provider’s stock soared over 22% after exceeding third-quarter expectations. The company reported a smaller-than-anticipated loss for the period, boosting investor confidence. 

Watchlist for today: CAVA, RIVN, RKLB, OXY, SWKS, SMCI, NVDA, TSLA

Markets & today's action:

• Asia-Pacific stock markets traded mostly in the red on Wednesday, following Wall Street’s overnight dip as the U.S. postelection rally slowed. Regional investors also analyzed Japan’s corporate goods data, which showed wholesale inflation climbing 3.4% year-over-year in October, the highest level since July 2022. Meanwhile, European markets were set to open in positive territory, with global markets turning their attention to forthcoming U.S. inflation figures.
• In the U.S., stock futures edged lower early Wednesday, with Dow Jones Industrial Average futures falling 100 points (0.22%), S&P 500 futures down 0.21%, and Nasdaq 100 futures slipping 0.31%. Traders await October’s Consumer Price Index (CPI) report, forecasted to rise 0.2% for the month, bringing the annual rate to 2.6%, according to a Dow Jones survey. The data will be pivotal in guiding the Federal Reserve’s decisions on interest rate adjustments. Will inflation stay steady, or could an unexpected rise shift the Fed’s approach and rattle markets further?

Bitcoin

• Bitcoin resumed its ascent on Tuesday, recovering from a brief pause in its postelection surge. According to Coin Metrics, the cryptocurrency rose 2% to $89,338.20, briefly crossing $90,000 just before the stock market close. This comes after Bitcoin shattered the $80,000 barrier within the previous two days. Many investors expect its upward trajectory to continue, with predictions of reaching $100,000 by year-end.
• Since November 5, Bitcoin has soared over 33% since election day, marking a new record for the first time since March. Analysts suggest the recent rally is just the start of a more significant trend. “There seems to be a gap between the previous all-time highs of $72,000 and $100,000,” said Hougan. “It’s hard to see what would prompt sellers to interrupt this momentum, though pullbacks are always possible. We’re in a new crypto market cycle, and the bias remains strongly bullish.” Meanwhile, Ether dipped 1% Tuesday, following a 28% surge over the past week. Could Bitcoin's momentum be sustained, or are pullbacks imminent as the market tests new heights?
  Watchlist: Bitcoin: 77 000-90 000, Ethereum: 3000-3180, Solana: 200-225

Forex

• The EUR/USD pair extended its decline on Wednesday, hovering just above the 1.0600 mark during Asian trading hours, marking its fourth consecutive day of losses. Market pressure on the Euro persists as traders brace for Thursday’s release of pan-EU GDP data for Q3, while concerns grow that U.S. President-elect Donald Trump’s fiscal policies could delay Federal Reserve rate cuts. Adding to the tension, October’s U.S. CPI is expected to show a 2.6% year-over-year rise, further bolstering the U.S. Dollar.
• Meanwhile, the Japanese Yen (JPY) fell to a fresh multi-month low, struggling to attract buyers during the Asian session. Uncertainty over the Bank of Japan’s (BoJ) rate-hike plans overshadows stronger Japanese Producer Price Index data, keeping the Yen under pressure. Elevated U.S. bond yields and worries over Trump’s proposed tariffs potentially hurting Japanese exports exacerbate the JPY’s decline, leaving it vulnerable against a bullish USD. Will upcoming inflation and GDP data amplify the USD’s strength further? 
  Watchlist: EUR/USD: 1.0630-1.0800, USD/JPY: 151-155

Basic Materials

• Gold prices (XAU/USD) gained some traction during Wednesday’s Asian session, recovering from a three-day slump that saw them drop to their lowest levels since September 20, around the $2,590-$2,589 range. The slight rebound appears driven by repositioning ahead of the U.S. consumer inflation data, with no significant fundamental trigger. The CPI figures are expected to shape market expectations regarding the Federal Reserve’s rate-cut strategy, potentially offering a new direction for the non-yielding metal.
• OPEC+ is facing dual challenges as China’s sluggish oil demand disrupts its supply-management efforts. Additionally, the prospect of U.S. energy policies under President-elect Donald Trump, set to take effect in 2025, could force OPEC+ to make more frequent adjustments to production plans than anticipated. With global oil dynamics in flux, how will OPEC+ adapt to stabilize the market?
  Watchlist: GOLD 2600-2700, US Oil: 65.20-73.20

The TEFS Analyst team wishes you a successful day!