21 November 2024
US stocks ended a choppy session little changed on Wednesday as a major chipmaker would release results after market close, with investors also monitoring the geopolitical developments. The S&P 500 ended flat.
US Treasuries edged lower (yields rose) after a soft 20-year Treasury debt auction result. 10-year yields edged up 1bp to 4.41%.
European stock markets were pressured by ongoing geopolitical tensions on Wednesday. The Euro Stoxx index fell 0.5%. The German DAX index dropped 0.3%, with the French CAC index down 0.4%. In the UK, the FTSE-100 slipped 0.2%.
European government bonds were range-bound. 10-year German bund yields edged higher 1bp to 2.35%, with 10-year French yields rising 2bp to 3.10%. Meanwhile, in the UK 10-year gilt yields were up 3bp to 4.47%.
Asian stock markets lacked clear direction on Wednesday ahead of the earnings release from a major US chipmaker. Japan’s Nikkei 225 slid 0.2%. Korea’s Kospi added 0.4%, led by gains in financials. Chinese equities fared well, with China’s Shanghai Composite and Hong Kong’s Hang Seng rising 0.7% and 0.2% respectively. Elsewhere, India’s stock market was shut due to the Maharashtra Assembly Election 2024.
Crude oil prices fell on Wednesday following unexpected increases in US weekly oil and gasoline stockpile, despite ongoing geopolitical concerns. WTI crude for December delivery settled 0.7% lower at USD68.9 a barrel.
In the UK, headline CPI rose more than expected to 2.3% yoy in October, from 1.7% yoy in September, driven by higher energy costs. Service sector inflation, closely watched by the BoE, edged higher to 5% yoy in October compared to 4.9% yoy in September.
The Bank Indonesia held policy rate unchanged at 6.00%, extending its pause following September’s 25bp cut. The central bank remains cautious due to recent rupiah weakness amid rising geopolitical risks and uncertainties around the US rate outlook.
In Turkey, elevated inflation points to the policy rate remaining at 50% at November’s central bank meeting. A rate cut is unlikely before early 2025.
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