Image Souce: Krish Capital Pty Ltd

Commodities Update

Brent crude oil futures stabilize around $72/bbl as IEA warns of a potential 1M bpd surplus by 2025, fueled by OPEC+ production hikes & weaker Chinese demand. The dollar’s surge adds pressure, while geopolitical tensions & increased US/Brazil/Canada output weigh on prices. Gold drops below $2,560, hurt by a strong dollar & Fed rate cut expectations. Silver and copper also retreat amid risk-on sentiment & lukewarm Chinese stimulus. All eyes on next month’s OPEC+ meeting and economic data releases.

Macro Update

US factory gate prices likely rose 0.2% MoM in October, following a flat September. Annual producer price inflation expected to climb to 2.3%, up from 1.8%. Core PPI (excluding food & energy) forecasted to increase 0.3%, pushing the annual rate to 3%, up from 2.8%.

Futures Update

US stock index futures edge higher as investors digest inflation data ahead of Fed Chair Jerome Powell's speech. Dow Futures +50 pts, S&P 500 Futures +6 pts, Nasdaq 100 Futures +10 pts. Focus shifts to Powell’s remarks on inflation & rates, with markets betting on a December rate cut.

Index Update

US stock indices hover near the flatline as the Trump election rally fades. Traders digest the CPI report showing 2.6% annual inflation & steady 0.2% MoM growth, fueling expectations for a 25bps Fed rate cut in December (odds now 82%). Tesla jumps 4% after sharp decline.

Market Movers

Consumer discretionary & real estate led the market, while communication services lagged. Tesla rebounded 4% after yesterday’s selloff, and Amazon rose 2.5% following the launch of a budget-friendly online marketplace.

Stocks exhibited a lack of clear direction throughout the trading day on Wednesday, with major indices fluctuating around the unchanged mark following the previous day's decline. The Nasdaq fell by 50.66 points, or 0.3 percent, closing at 19,230.74, while the S&P 500 inched up by 1.39 points, or less than a tenth of a percent, to finish at 5,985.39. From a technical standpoint, the S&P 500 is currently positioned near the upper boundary of a rising channel, indicating that a period of consolidation may be imminent. Furthermore, the 14-period Relative Strength Index (RSI) is climbing and nearing overbought territory. Key levels to watch are resistance at 6,065 and support at 5,900.

You Are a Few Steps Away From Gaining Smart Market Insights

Sign up/Login Now and Gain Access to Exciting Opportunities from Investor and Resource Space!