Emmanuel Macron, the president of France, has held Russia in contempt for sowing false information in Africa to serve its own interests. The Wagner Group, a network overseen by a close ally of the Kremlin, was suspected of being complicit in the massacres of several hundred civilians. The claims, however, have been denied by Moscow.
The Automotive Overseas Development Summit in China has been cancelled due to COVID. China only recently decided to loosen up its "zero-COVID" policy. Job cuts are on the rise as top US name brand companies, particularly those in technology, reduce their workforces to cut costs as the economy slows.
EQUITIES
Stock futures remain mostly unchanged as investors weigh concerns over possible new pandemic restrictions in China against positive earnings reports from major retailers. S&P 500 stabilize near 4000 price level while Nasdaq 100 index fell short of 123.57 points or 1.06% as there is no significant news yesterday.
OIL
Rumours about the possible OPEC+ pivot thwarted by Wall Street Journal have pushed the price down, breaking a month’s support price at 76.28 into a low of 75.30. Saudi energy minister, Abdulaziz bin Salman, denied the claims to facilitate price recovery. OPEC+ past decision to cut 2 Million barrel per day have not put a dent in oil’s price decline as demands worldwide is in recession. OPEC+ are expected to meet at 4th of December.
CURRENCIES
The US dollar currency index, which is pegged against a basket of currencies, appreciated last week after a better than forecast retail sales report. Asian currencies have been hit as COVID spiked in China, and investors expect China to pivot into a stricter lockdown.
GOLD
On the technical side, Gold has stopped making a lower low on the daily chart. Even though it has not reached its targeted support, it is the first sign of reversal. Market is patiently waiting for Federal Reserve meeting minutes as trading volume eases.
ECONOMIC OUTLOOK
The electric vehicle (EV) market is valued at $246.70 billion, and Tesla absolutely dominates the market, having built gigafactory in Texas, Berlin, and Shanghai. The market will only get bigger as Mazda announces a massive $11 billion investment in EVs. Retail investors could instead look in the direction of batteries, as they have a longer lifetime value than the EV market.
The bond market is going wild as the return on the Treasury yield in 1 year exceeds that in 10 years by 1.03%. It is also known as "yield curve inversions" because, in normal settings, longer holding periods equate to a higher return. Analysts often compare the 1 year treasury bond yield to the 30 year period to expect a recession, which is now lower by 0.96% compared to the 1 year period. The waves are coming, and investors are advised to be prepared.