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Weekly Markets Review

SEVEN DAYS MARKET

06  –  12   NOVEMBER  2021

In Essence:

EQUITIES RALLY PAUSE; GLOBAL PUBLIC DEBT RECORD; EUR UNDER USD PRESSURE; BITCOIN UP

Equities:

US

Stocks were poised to snap a five-week winning streak, knocked by concerns about high levels of inflation.  Futures for the S&P 500 edged up 0.2% Friday, pointing to a small opening advance for the benchmark index. The S&P 500 has fallen 1% so far this week, interrupting a streak of gains that kicked off when U.S. companies began to report strong earnings in mid-October.

EU

 European stocks were muted on Friday, continuing to search for direction as global investors assess recent high inflation prints and corporate earnings.

China

Hang Seng gains in week as weaker China data seen underpinning easing bets. Stocks rose for a fourth day as weaker economic data for October likely to fuel policy easing bets in China.

Debt:

Sovereign

Global public debt is estimated to stand at 97.8 percent of the world’s gross domestic product in 2021, 0.8 percentage point lower than a year before but still at record-high levels on the back of a massive fiscal response in the wake of the coronavirus pandemic, the International Monetary Fund said Wednesday.

Corporate

The supply of euro non-financial corporate bonds after accounting for the maturity of older debt looks set to rise next year toward the pre-2019 average of EU60b – EU80b, Barclays analysts write in a note.

FX:

USD/EUR

EUR/USD is trading under pressure below 1.1450, sitting at the levels last seen in July 2020.  The US dollar remains firmer amid the uptick in the Treasury yields, as the Fed speculation continues to play out after stronger US CPI

Standouts

The British pound headed for a third week of losses, having touched its lowest level since Christmas. Options suggest the move may have legs to follow.

Commodities:

Oil

Oil prices drifted lower on Friday, with WTI approaching $80/ bbl, wiping out gains from the previous session, as the dollar continued to rise on bets the U.S. central bank will bring forward plans to raise rates to tame inflation.

Gold

Gold was flat on Friday but was set for its biggest weekly jump in six months, as high U.S. consumer prices drove interest in the metal as an inflation hedge. Spot gold steady at $1,860.81/ounce, after leaping to a five-month peak on Wednesday.

Emerging Markets:

Cryptos

Bitcoin price declined below the USD 65,000 support level before there was a minor recovery. It is currently trying to recover further and facing a major hurdle near USD 65,500. Besides, most major altcoins are moving higher.

Turkey

Estimate for year-end Turkish inflation rose from 17.63% in October to 19.31% in November, according to survey of market participants conducted by the country’s central bank.