News

Dollar Index Rebounds from a two-week low on Safe Haven Demand

Equities

Major US indices finished sharply lower, weighed down by the recent bond market developments which hint to a possible economic slowdown. Moreover, the woes of a failure of reaching a trade deal between China and the United States pressured investors' sentiment. The Dow Jones Industrial Average futures fell 3.1% to 25027, the S&P500 futures dropped 3.2% to 2700, and the Nasdaq futures declined 3.6% to 6802.

USD

The dollar index which measures the greenback against a basket of major currencies bounced from a two-week low of 96.38 to settle almost flat for the day at 96.96. Despite the pullback, investors remain cautious as the inversion in the US yield curve could force the Fed to pause interest rate hikes. Treasury yields continued to slide with the 5-year yields dropping below the 2-year and the 3-year yields to signal a slowdown in the economic activity ahead.

Metals

Gold prices retreated from a five-week high as the dollar edged higher. The gold ounce fell from $1242 to trade at $1233 ahead of the European trading session. Meanwhile, the silver ounce tested a low of $14.40.

Oil

Oil prices fell from a two-week high on concerns over a global economic slowdown, and rising US supplies. The drop in the global stock market weighed on the performance of oil prices. Moreover, the American Petroleum Institute reported that the US weekly crude oil stock rose 5.360 million barrels to a total of 448 million barrels. The West Texas Intermediate crude futures lost 0.9% to $52.57, and the Brent futures tumbled 0.8% to $61.34.

Major Economic Events

GMT Country Event Expectation Previous
9:30 UK Services PMI (Nov) 52.5 52.2
14:45 US Services PMI (Nov) 54.4 54.4
15:00 CA BoC Interest Rate Decision 1.75% 1.75%
19:00 US Beige Book    

 

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