📆 Friday, November 22
► European markets started positively into the session after yesterday's strong Wall Street performance, driven by gains in tech and real estate. However, investors were then surprised by sharp losses following more signs that the German/Eurozone economy remains in trouble and following the weak performance of the Chinese market. Notable performers included ASML, which led the rebound as sentiment improved following Nvidia’s late-session rally in the US Germany’s private sector activity showed signs of deepening contraction, with PMI data highlighting a sharp decline in business activity. France’s flash composite PMI also plunged, signaling the steepest contraction since January. Also German GDP growth data came in below expectations (at -0.3% YoY vs. -0.2% expected). These economic challenges fueled bets on further ECB rate cuts, boosting sovereign bonds across the region. Business activity in the UK also shrank more than expected and is back in contraction (<50) territory (at 49.9 down from 51.8 in October and vs. 51.8 expected).
► US stock futures traded mixed, reflecting uncertainty around market momentum. The Nasdaq and S&P 500 futures edged down. Meanwhile, the USD extended its gains, marking its eighth consecutive weekly rise. Strength in the USD was further supported by safe-haven flows amid continued geopolitical tensions in Ukraine, as both sides escalated their rhetoric and actions. The DXY is up 0.4% in US pre-market trading.
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