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The U.S. dollar traded firmer against other major currencies and also continued to push higher in emerging market currency pairs like the USD/CNH and USD/MXN.
Cryptos traded clearly weaker for the second day in a row on Monday with Bitcoin falling to levels around $15.5k and thus a new two-year low. Ethereum came also under pressure but so far remained above the low from two weeks ago. The total estimated crypto market capitalisation meanwhile further declined to levels just above $800 million. Solana remains one of the weakest performing altcoins over the past seven days falling by around 18% and losing roughly 65% of its value since the beginning of the month. Solana was significantly impacted earlier by the collapse of FTX - which until then was one of the most popular exchanges in that space.
Stock markets continued to trade fairly calmly with U.S. indices like the US 500 and US Tech 100 trading once moderately weaker while European markets like the Italy 40 and Germany 40 were close to unchanged. The Hong Kong 50 continued to decline for the second trading day in a row by Tuesday morning while at the same time the China A50 index started to recover. The Volatility Index VIX meanwhile is in the continuously rolling contract down by approximately twenty per cent compared to a month ago.
Relatively few potentially market-relevant fundamental data releases are scheduled for Tuesday besides Canadian retail sales and house price index data.
With the U.S. dollar having its best daily performance in November so far if measured by the USDX, the EUR/USD rate further declined to a new ten days low, falling below 1.025.
The German producer price index (PPI) published on Monday morning indicated a significant decrease in the rate of inflation on producer prices as the index dropped by 4.2% on a monthly basis and declined from 45.8% annualized inflation in the previous month to "just" 34.5%.
On Wednesday this week eurozone and German manufacturing and services PMI statistics can be expected and then on Friday German GDP statistics for the third quarter will be published.
Gold traded on Monday lower for the fourth day in a row as the dollar continued to appreciate. Gold (EUR) CFD prices meanwhile were almost unchanged and were hovering by Tuesday morning around the €1,700 level. While silver and platinum prices were at the end of the day trading close to the levels from last Friday, a further steep downside was seen in palladium markets. Since the recent peak on Wednesday last week palladium prices dropped by more than eleven per cent.
Oil prices were at the end almost unchanged with WTI crude oil remaining close to the $80-mark as on Friday after a highly volatile trading session with the daily range in prices between high and low amounting to roughly 6.5%.
Oil prices were said to have been under pressure over the worsening COVID outbreak in China with officials making so far only very minor tweaks to containment policies widely described as "zero COVID" approach. Prices might have also been affected by a rumour published in the WSJ that OPEC+ could be considering an increase in output of 500 thousand barrels per day - something Saudi Arabian officials quickly sought to deny. Geopolitical developments in the Middle East could also be of some impact as now not only Turkey is attacking Kurdish positions in Northern Syria but Iran attacking positions in North Iraq. FT reported even that it might be possible that the Turkish leadership could consider a ground offensive in North Syria.
As usual this week on Tuesday the American Petroleum Institute (API) publishes its Weekly Statistical Bulletin followed by the Energy Information Administration (EIA) on Wednesday when it releases its Weekly Petroleum Status Report that also contains data on weekly changes in crude oil, gasoline and distillate stockpile data.
Stock market indices like the US 500 and US Tech 100 continued to decline at a moderate pace this week as well, while the performance among different economic sectors was somewhat mixed. Chip sector stocks (US Semiconductors ETF -1.71%) clearly underperformed, while non-cyclical (US Non-Cyclicals ETF +0.98%) and real estate stocks (US Real Estate ETF +0.64%) traded higher.
Disney (+6.22%) was one of the best-performing stocks in the market after the company announced that former CEO Bob Iger was suddenly hired to come back to that position and immediately announced significant restructuring for the company with a "... new structure that puts more decision-making back in the hands of our creative teams and rationalizes costs."
Zoom Video Communications traded in the extended session almost seven per cent lower following the company's earnings release despite earnings per share at $1.07 (adjusted) exceeding expectations. However, Zoom's full year guidance for revenue, estimated at $4.37 billion to $4.38 billion was somewhat lighter than expected.
With crypto valuations further declining on Monday and Bitcoin traded below $16k, Coinbase (-8.95%) was significantly underperforming trading at times at a new low since its IPO in 2021.
On Tuesday Autodesk, Best Buy and Baidu are set to publish their respective quarterly results.
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