Market shrugs off geopolitical concerns 20/11/2024

HOT stories for today

Stocks on the move:

• C3.ai (AI) shares surged 25% after the announcement at the “Microsoft Ignite” event. The expanded partnership will make all C3 AI applications, including C3 Generative AI, accessible via the Microsoft Commercial Cloud Portal, simplifying enterprise adoption.
• Walmart (WMT) shares gained 3% in after-hours trading as the retailer exceeded revenue and earnings expectations and provided strong guidance.
• Keysight Technologies (KEYS) shares climbed over 8% in after-hours trading after the company reported fiscal fourth-quarter results that surpassed analysts’ expectations for both revenue and earnings.
• Powell Industries (POWL) shares dropped nearly 14% after the electrical equipment manufacturer reported fiscal 2024 net new orders of $1.1 billion, down from $1.4 billion in the previous year.

Watchlist for today: NVDA, COIN, POWL, KEYS, TJX, TGT, WSM, ZIM

Markets & today's action:

• Asia-Pacific markets mostly declined on Wednesday, reflecting a mixed session on Wall Street amid escalating geopolitical tensions between Ukraine and Russia. Investors analyzed October trade data from Japan, which showed export growth at 3.1% year-over-year, exceeding Reuters’ estimates and rebounding from a 1.7% decline in September. Imports also outperformed expectations with 0.4% growth, though down from 2.1% in the prior month.
• In U.S. markets, stock futures ticked higher early Wednesday. Dow Jones Industrial Average futures rose 67 points, or 0.15%, S&P 500 futures climbed 0.12%, and Nasdaq 100 futures edged up 0.09%. Investors are focused on a critical earnings report from Nvidia (NVDA), along with results from retailers Target (TGT) and TJX, both due later in the day. Comcast (CMCSA) shares gained more than 2% in after-hours trading ahead of an expected announcement about spinning off its cable networks. Additionally, Federal Reserve officials, including Governors Lisa Cook and Michelle Bowman and Boston Fed President Susan Collins, are set to deliver speeches that may provide further market cues.

Bitcoin

• Bitcoin surged to an impressive $93,975, marking a 3.3% gain against the U.S. dollar over the past 24 hours and a 7.5% rise for the week. With a commanding market capitalization of $1.86 trillion, the cryptocurrency continues to dominate the digital finance landscape.
• The price rally was accompanied by a flurry of trading activity, with $84.79 billion worth of bitcoin changing hands within a single day. The sharp movement also triggered $44.4 million in liquidated BTC short positions, highlighting the volatile nature of the derivatives market. Experts attribute this surge to increasing institutional interest and growing excitement around regulated trading options, including BlackRock’s IBIT exchange-traded fund (ETF). Bitcoin’s milestone underscores its role as a cornerstone of the financial ecosystem, attracting substantial investments and fueling heightened market activity.
  Watchlist: Bitcoin: 85 000-93905, Ethereum: 3000-3380, Solana: 229-249

Forex

• The Japanese Yen (JPY) remains weak against the U.S. Dollar (USD), trading near weekly lows during Wednesday’s Asian session. The USD/JPY pair extended gains following the previous day’s recovery from a one-week low, driven by investor confidence and uncertainty over the Bank of Japan’s (BoJ) next interest rate move, which continues to weigh on the yen.
• Similarly, the EUR/USD pair stayed subdued as the USD appreciated, trading near 1.0590 during Asian hours. The dollar’s strength, supported by safe-haven flows and market dynamics, kept the euro under pressure.
  Watchlist: EUR/USD: 1.0496-1.0610, USD/JPY: 151-156.9

Basic Materials

• Gold prices (XAU/USD) rose for the third consecutive day, buoyed by safe-haven demand. However, they retreated slightly after reaching a 1.5-week high during the Asian session, trading around $2,635-$2,636. While geopolitical tensions provide ongoing support, a rebound in U.S. bond yields and renewed demand for the U.S. Dollar (USD) have limited further gains. Traders are now focused on upcoming speeches from Federal Open Market Committee (FOMC) members for potential insights into future interest rate policies.
• Meanwhile, according to the American Petroleum Institute (API), U.S. crude oil inventories rose by 4.753 million barrels for the week ending November 8, significantly exceeding analyst expectations of an 800,000-barrel increase. Despite the inventory build, Brent crude edged higher, trading at $73.42 per barrel, up $0.12 (+0.16%) on the day, as fuel stock declines tempered bearish sentiment.
  Watchlist: GOLD 2530-2700, US Oil: 65.20-70.50

The TEFS Analyst team wishes you a successful day!