Newsquawk Thanksgiving US Market Wrap: Stocks and bonds rally in holiday shortened trade while USD/JPY falls beneath 150 after hot Tokyo inflation

Analysis details (18:12)

• SPX +0.56% AT 6,032, NDX +0.90% AT 20,930, DJI +0.42% AT 44,911. 


• Consumer Discretionary +1.11%, Technology +1.00%, Materials +0.49%, Industrials +0.43%, Consumer Staples +0.41%, Communication Services +0.34%, Energy +0.34%, Health +0.26%, Financials +0.02%, Utilities -0.05%, Real Estate -0.52%


• T-note (H5) Futures Settle 9 Ticks Higher at 111-06

US stocks closed green on holiday-shortened trade due to Thanksgiving on Thursday. As such, the US newsflow has been light. The sector breakdown sees Industrials, Tech and Consumer Discretionary outperform, while Utilities, Real Estate and Communication names underperform, but still closed green. The communication sector was weighed on by Alphabet's (GOOG) underperformance, following the Competition Bureau suing Google for alleged anti-competitive practices in online advertising, via Reuters. 

Stock highlights include the FTC launching a detailed antitrust investigation into Microsoft (MSFT), focusing on its cloud computing, software licensing, cybersecurity, and AI businesses. Applied Therapeutics (APLT) tanked on the US FDA declining to approve its drug to treat galactosemia.

In FX, The Dollar was sold, primarily due to gains in JPY after Tokyo inflation metrics were hotter than expected overnight, allowing USD/JPY to fall below 150. Elsewhere, NZD strength persists, helped by remarks overnight from RBNZ's Hawkesby, "the Bank did not consider cutting the official cash rate by 75bps at its policy meeting this week". Separately, EUR/USD was little changed after EZ inflation metrics were in line. The BRL was very volatile, on the reopening of trade it plummeted with USD/BRL peaking at 6.1150 before paring as officials attempted to instil calm into markets. 

T-notes were bid throughout the session in quiet trade with attention turning to US NFP and ISMs next week while it appears low liquidity and month-end flows were also likely supportive. In the Eurozone attention is on France's fiscal woes with pressure on French bonds seen as PM Barnier provided concessions to the RN, saying he will drop the electricity tax increase. However, Le Pen says she still has red lines and Barnier has until Monday to adhere to them before she decides on the budget as a whole. 

In Crude, prices are firmer, with WTI and Brent both in the green as geopolitical tensions ramp up in Syria with Russian and Syrian warplanes launching airstrikes against the position of armed rebels, via Iran International. Markets continue to await updates on the Lebanon ceasefire and OPEC+ after reports indicate they are considering delaying an output hike until Q1 2025.

For the Newsquawk European Market Wrap, please click here.

29 Nov 2024 - 18:11- ForexGeopolitical- Source: Newsquawk