The American Stock Market surged on Monday as investors awaited quarterly reports from several of the largest American technology-related companies during the week. This week also marks the release of the American job report for October on Friday, while investors keep a close eye on political news ahead of the American presidential election just over a week away. The yields on the American ten-year treasury bond reached a three-month high ahead of the week’s data and election, rising during afternoon trading in the US. The broad S&P 500 index had risen by 0.3 percent at close, with the tech-heavy Nasdaq and Dow Jones industrial indexes climbing by 0.3 percent and 0.7 percent, respectively.
Oil prices plummeted by over 6 percent on Monday, following Israel’s retaliatory strike against Iran on Saturday that avoided oil and nuclear facilities, thus not disrupting energy supply. The Organization of the Petroleum Exporting Countries and its allies, OPEC+, maintained its oil production policy unchanged last month, including a plan to begin increasing production from December. The group will meet on December 1 ahead of a full OPEC+ meeting. The US announced on Monday that they are seeking to purchase up to 3 million barrels of oil for the Strategic Petroleum Reserve for delivery until May next year, meaning the government would have some funds left for additional purchases until lawmakers approve more funds. WTI crude oil had fallen by 4.4 dollars to 67.4 dollars per barrel at 20:35, while Brent crude had dropped by 4.1 dollars to 71.9 dollars per barrel.
Base metals declined broadly yesterday. Lead and aluminum saw the most regression, with 0.7 percent, followed by nickel, which lost 0.6 percent. Tin fell by 0.3 percent and copper by 0.1 percent. Today’s winner was zinc, which advanced by 1.7 percent. Gold’s record rally paused on Monday as American treasury bond yields and the dollar strengthened. Meanwhile, investors await a series of American economic data to be released during the week to gain clues about the Federal Reserve’s interest rate outlook. The price of gold fell by 3.9 dollars to 2,742.7 dollars per ounce.
Among individual American stocks, tech giants Apple and Google’s parent company Alphabet rose by 0.9 percent and 0.8 percent, respectively. Oil giants had a rougher day on the stock market, with Chevron closing down by 0.2 percent. Chip giant Nvidia declined by 0.7 percent.
The American ten-year treasury rose by 5 basis points to 4.29 percent.
Asian markets are trading volatilely on Tuesday morning, with the Tokyo Stock Exchange turning last night’s initial declines into gains. The Chinese markets are digesting another liquidity injection from China’s central bank, the People’s Bank of China, aimed at supporting the financial system. An unexpected election result in Japan, the US’s key security ally in Asia, combined with the potentially destabilizing American presidential election next week, may give China and other rivals an opportunity to test Western resolve in East Asia. Analysts suggest that China may increase intrusions into Japanese territory and intensify pressure on Taiwan, while North Korea, deepening its security cooperation with Russia, may intensify its ballistic missile tests. At 07:40, the Nikkei 225 had risen by 0.8 percent, while the Chinese Shanghai and Hang Seng Index had declined by 0.8 percent and progressed by 0.4 percent, respectively.
On the Stockholm Stock Exchange, Hanza reported at 07:30. The company experienced negative organic growth during Q3 and reported revenues of 1,107 million kronor.
Among this morning’s recommendations, Goldman Sachs downgraded ABB’s recommendation to neutral from buy and set the target price at 52 Swiss francs. Pareto Securities lowered Traton’s target price to 460 kronor (470) but reiterated its buy recommendation. Volvo Cars’ target price was reduced to 21 kronor (24) by Goldman Sachs, which also reiterated a sell recommendation. SEB reiterated a hold recommendation for Linc but lowered the target price to 86 kronor (100).
On the macro front, Tuesday is relatively busy. The day began at 08:00 with the announcement of Sweden’s quarterly gross domestic product for Q3, which decreased by 0.1 percent. The Swedish retail sales figures were also released, declining by 0.1 percent. At 13:30, the US trade balance for goods will be announced, followed by the country’s consumer confidence at 15:00.