North American News
Stocks close lower for the 2nd consecutive day
- NASDAQ index leads the way to the downside with a decline of -0.89%
Major indices open higher at the start of the day but after the JOLTs job openings came in higher than expectations and reversed a lot of the declines from last month, the gains were trimmed and the price is turned into negative territory. The NASDAQ index is the weakest of the major indices with a decline of -0.89%.
A snapshot of the market shows:
- Dow industrial average fell minus 82.14 points or -0.25% at 32650.84
- S&P index fell -15.94 points or -0.41% at 3856.03
- NASDAQ index fell -97.29 points at -0.89% at 10890.86
- The Russell 2000 of small-cap stocks bucked the trend with a gain of 4.525 points or 0.25% at 1851.38
JOLT job openings for September 10.717M vs 10.000M estimate
- JOLTs job openings and data for September 2022
- Prior month 10.053M vs 10.775M est. The decline last month was the largest one month drop on record. The prior month was revised up to 10.280M
- JOLTs job openings higher than expectations at 10.717M vs. 10.000M
- job openings were up 6.5% month on month. It was down -0.8% vs. it’s a peak in March 2022
- largest increases came in accommodation and food services at +215,000. Healthcare and social assistance rose by 115,000 and transportation warehousing and utilities increased by 111,000.
- Decreases came in wholesale trade at -104,000 and in finance and insurance -83,000
- Hires edged down 6.1 million
- total separations came in at 5.7 million down 370,000 on the month or -3.7%
- Quits came in little changed at 4.1 million. The quits rate is thought to be a barometer for the strength of the labor market as a quit because they tend to have another job lined up. The quits rate was at 2.7% for the 3rd month in a row signaling steady.
- layoffs and discharges edged down to 1.3 million
US September construction spending +0.2% vs -0.5% expected
- US September 2022 construction spending data
- Prior was -0.7%
- Construction spending during September 2022 was estimated at a seasonally adjusted annual rate of $1,811.1 billion, 0.2% above the revised August estimate of $1,807.0 billion
- Private construction +0.4%
- Public construction -0.4%
The Atlanta Fed GDPNow estimate for 4Q growth falls to 2.6% from 3.1% last
- The Atlanta Fed GDPNow estimate for 4Q growth
The Fed GDPNow estimate for 4Q growth has been reduced to 2.6% from 3.1%. IN their own words:
The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2022 is 2.6 percent on November 1, down from 3.1 percent on October 28. After this morning’s construction spending release from the US Census Bureau and the Manufacturing ISM Report On Business from the Institute for Supply Management, a decrease in the nowcast of fourth-quarter real personal consumption expenditures growth from 3.7 percent to 2.9 percent was slightly offset by an increase in fourth-quarter real gross private domestic investment growth from -1.6 percent to -1.3 percent.
Commodities
Gold steady above $1,640 after pulling back from $1,657
- Gold finds support at $1,640 and remains positive on the day.
- Dollar’s bullish reaction to US data has capped gold’s recovery.
- Hopes of further Fed hawkishness have weighed on gold prices.
Gold futures reversal from session highs at $1,657 seen during the US morning trade has been contained at $1,640 before picking up to $1,650 area at the time of writing. On the daily chart, the precious metal remains 0.8% up, regaining lost ground after a three-day reversal.
US dollar’s rebound has capped gold’s recovery
The yellow metal went through a solid recovery during the Asian and European sessions, appreciating from $1,630 to session highs at $1,657, buoyed by the positive risk sentiment that sent the US dollar tumbling.
The market mood changed radically after the release of a series of bright US macroeconomic figures, that bolstered confidence in the US economic momentum, and cleared the path for further aggressive tightening by the Federal Reserve.
Manufacturing activity has been a positive surprise in October, with the US S&P and the ISM PMIs registering better than expected results. Beyond that, the JOLTS job openings have shown a solid increase in vacancies despite the Federal Reserve’s efforts to cool a historically tight labor market, which shows 1,9 jobs for every worker.
These figures have eased fears of an economic slowdown triggered by disappointing data released previously and refute the theory that the Federal Reserve might start to signal a slower monetary tightening in the months ahead.
WTI’s recovery stalls below $89.00 with the US dollar surging
- WTI’s rebound from $85.30 stalls below $89.00.
- Crude prices’ recovery loses strength with the US dollar surging.
- Bright US data dampen hopes of a Fed pivot in December.
The solid recovery in oil prices witnessed during Tuesday’s Asian And European sessions, has lost traction during the US session, weighed by a sudden USD rally. WTI futures have been capped at $89.40 after having bounced up from $85.30 lows on Monday.
The US dollar jumps on bright US data
A set of better-than-expected US macroeconomic figures released earlier on Tuesday have boosted confidence in the strength of the US economy, leaving clearing the path for the Fed to continue with its aggressive tightening path. This has sent the US dollar higher, thus weighing on crude prices.
US manufacturing activity has posted a positive surprise. The ISM PMI slowed down to 50.2 in October, better than the 50 reading expected and the S&P PMI confirmed the good news. October’s 50.4 reading reveals that sector activity expanded, against the expectations of a moderate contraction, at 49.9.
Beyond that, the JOLTS job openings have shown an increase to 10.7 million vacancies in September, up from 10.2 million in August, instead of the decline to 10 million anticipated by the experts. These figures demonstrate the tight conditions of the US labor market, despite the Fed’s efforts to cool it off in order to curb inflation.
Previously, Oil prices had rallied more than 3% in a risk-on session amid growing speculation pointing out to a Fed pivot in December. The federal funds futures market had priced in a 57% chance of a 0.50% rate hike in December, which sent the USD tumbling across the board during the Asian and European sessions.
EU News
The major European indices close higher
- Off there high levels but still up on the day
The major European indices are closing the day with gains across the board. The closing levels are off their highs for the day but still held onto gains while the US stocks moved lower. The final numbers are showing:
- German DAX, +0.64%
- France’s CAC, +0.98%
- UK’s FTSE 100 +1.29%
- Spain’s Ibex +0.53%
- Italy’s FTSE MIB +0.36%
ECB Nagel: There is still a long way to go on rate hikes
- ECB Nagel speaking
ECBs Nagel is on the wires saying:
- The is still a long way to go on rate hikes
- INflation is persistent adn ECB must be more stubborn than stubborn inflation
Meanwhile, ECBs de Cos adds:
- Progess on onwinding monetary accomodation significant; have yet to reach end of rate increases.
- Bond portfolio reduction should begin at the beginning of next year
Other News
Saudi Arabia on high alert on warning of imminent Iranian attack
- More war, just what we need
The WSJ reports:
Saudi Arabia has shared intelligence with the U.S. warning of an imminent attack from Iran on targets in the kingdom, putting the American military and others in the Middle East on an elevated alert level, Saudi and U.S. officials said.
The report said Iran is poised to carry out attacks on Saudi Arabia and Erbil, Iraq, in an effort to distract attention from domestic protests that have roiled the country since September.
They noted that Iranian authorities have publicly accused Saudi Arabia, along with the US and Israel, of instigating the demonstrations.
Cryptocurrency News
Will Cardano price nosedive to $0.373 due to the FOMC meeting?
- Cardano price hovers inside the $0.377 to $0.440 range with liquidity objectives on both sides.
- A flip of $0.417 could trigger a bullish outlook that propels ADA to $0.440
- But a breakdown of the $0.408 barrier could catalyze a sell-off to $0.394 and $0.373.
Cardano price shows an interesting situation that presents opportunities regardless of the breakout direction. If investors plan to trade ADA, they need a comprehensive understanding of the triggers.
With the Federal Open Market Committee (FOMC) nearing, investors are expecting a sell-off in Bitcoin price, which could take altcoins, including Cardano, down with it.
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