Market News Summary

Mortgage applications in the United States rose by 0.3% on a seasonally adjusted basis for the week ending November 24 compared to the previous week. This marks the fourth consecutive increase, constituting the longest weekly growth streak since March of last year.

Most European stock indices closed higher on Wednesday, as regional markets regained positive momentum. Investor sentiment was influenced by comments from Federal Reserve members. The broader Stoxx 600 index rose by 0.43% at the close, with automotive sector stocks gaining 2.3%.

Dollar Index (USDX)

The dollar index has stabilized slightly above its pivot point, currently trading at $102.74, as investors await the personal consumption expenditures (PCE) data for October.

The U.S. Department of Commerce revised its initial estimates for third-quarter gross domestic product (GDP) to 5.2% from 4.9%, confirming the resilience of the U.S. economy. However, these data are unlikely to encourage the Federal Reserve to start cutting interest rates in the near future, as inflation has remained well above the target of 2%.

Pivot Point: 102.65

Spot Gold (XAUUSD)

Gold prices are testing crucial technical levels around $2043 per ounce, and markets are awaiting economic data today, which may provide clearer direction for gold.

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed optimism about inflation expectations, indicating that the interest rate hike cycle for the central bank may be nearing its end. Bostic’s comments, made in an article on Wednesday, suggest a potential pause in policy tightening as the economy begins to feel the full impact of previous increases.

Pivot Point: 2043

Dow Jones Index (DJ30ft – US30)

U.S. markets closed with mixed results on Wednesday after the revised Gross Domestic Product (GDP) data eased concerns about a recession. Investor caution regarding the duration of the Federal Reserve’s tightening policy was also present ahead of personal consumption expenditures (PCE) data for October.

The Dow Jones Industrial Average rose by 0.04%, or 13 points, bringing gains to 7% since the beginning of November, heading for its highest monthly gain since October 2022. Meanwhile, the NASDAQ fell by about 0.2%, and the S&P 500 declined by less than 0.1%. Nevertheless, the S&P 500 remained up over 8% since the start of November, aiming for its highest monthly gain in 16 months.

Pivot Point: 35550

US Crude Oil (USOUSD)

Oil prices rose by more than a dollar per barrel yesterday, as investors focused on expectations of announcing new production cuts during the upcoming OPEC+ meeting, overlooking the increase in crude oil, gasoline, and distillation products inventories in the United States.

Brent crude futures increased by 1.7%, or $1.42, to reach $83.10 per barrel at the settlement. Meanwhile, West Texas Intermediate (WTI) crude futures rose by 1.9%, or $1.45, to $77.86 per barrel.

Pivot Point: 77.15

Risk Warning

This article provides real-time market analysis from contributing analysts. Please note that any views expressed in this article do not constitute operational advice. It is important to assess your risk tolerance and make independent trading decisions. STARTRADER holds no responsibility for any trading consequences that may arise from relying on the views expressed in this article.