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As traders awaited President-elect Donald Trump’s cabinet choices and evaluated the outlook for Federal Reserve easing, Asian equities increased on Tuesday, while U.S. bond rates and the currency stayed below recent multi-month highs. Traders are leveraging the recent market weakness to purchase equities at discounted prices, despite concerns regarding the outlook for interest rates. Markets were also supported by substantial gains in mining and energy stocks, which were led by the increasing prices of commodities. Although the potential for significant moves are somewhat constrained by , tech shares rose in tandem with Wall Street’s comeback from last week’s sharp losses. According to CME FedWatch, market bets on a quarter-point interest rate cut at the Fed’s next meeting in December have dropped to less than 59% from 62% the day before and more than 65% a week ago. Markets view Trump’s projected fiscal expenditures, higher tariffs, and tougher immigration as inflationary, which might impede Fed rate cuts at a time when a string of strong economic data is already preventing them. Trump has started to nominate people; last week, he filled jobs in the defence and health sectors, but the Treasury secretary and trade representative, two crucial positions for the financial markets, have not yet been revealed.The data slate in Europe today is scant, with the main event being the final consumer inflation figures for the euro zone in October. The U.S. will only see housing data. However, there are numerous central bank speakers, including Kansas City Fed President Jeffrey Schmid later in the day. Ahead of that, Bank of England Governor Andrew Bailey and his peers will appear in parliament, where they are likely to face questions about the implications of the government’s expansive budget and the potential impact of Trump’s trade policies.
Overnight Newswire Updates of Note
(Sourced from reliable financial news outlets)
FX Options Expiries For 10am New York Cut (1BLN+ represents larger expiries, more magnetic when trading within daily ATR)
CFTC Data As Of 15/11/24
Technical & Trade ViewsSP500 Bullish Above Bearish Below 5960
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EURUSD Bullish Above Bearish Below 1.0650
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GBPUSD Bullish Above Bearish Below 1.2750
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USDJPY Bullish Above Bearish Below 154
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XAUUSD Bullish Above Bearish Below 2600
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BTCUSD Bullish Above Bearish Below 85000
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