Trading activities remained subdued as financial markets navigated narrow ranges, with the dollar hovering near its weakest level in nearly three months, anticipating upcoming national holidays. The Asian equity benchmarks experienced minimal changes, and artificial intelligence stocks saw a dip following the lukewarm response to Nvidia Corp.’s earnings. Futures for European and U.S. stocks showed little movement as the trading environment quieted down ahead of the holiday season, including Thanksgiving in the United States.
Kyle Rodda, a market analyst at Capital.com, noted, “Equity markets have benefited from several macro tailwinds recently, with expectations of peak interest rates and cuts next year contributing to the multiple expansion observed in the November rally.” However, sentiments may be tempered by Nvidia’s results as downward revisions to earnings growth become apparent in the market.
Mainland Chinese shares edged lower, particularly in the tech and industrial sectors. Analysts suggest that Chinese stocks may remain at current levels for some time due to unresolved issues, including the lingering impact of the property bubble.
The offshore yuan extended its winning streak into a fifth day after China’s central bank set the currency fixing at the strongest level since June. Treasuries and the greenback showed little change against their Group-of-10 peers during Asian trading hours.
Cryptocurrencies experienced a decline as Binance Holdings Ltd. and its CEO Changpeng “CZ” Zhao pleaded guilty to anti-money-laundering and U.S. sanctions violations, settling a comprehensive agreement with the U.S. Bitcoin and Ether saw declines in response to the news.
The Federal Reserve’s minutes, released on Tuesday, revealed a united strategy among policymakers to “proceed carefully” on future interest-rate moves. Swap contracts linked to Fed meetings currently indicate a 25% probability of a first Fed rate cut in March.
Focus in Asia remains on China’s latest probe into company executives following the arrest of DouYu International Holdings Ltd.’s founder Chen Shaojie. Several unexplained executive detentions have created concerns across China’s private sector.
Markets also digested news of a limited pause in fighting between Israel and Hamas, and oil prices steadied with signs of another stockpile build in the U.S. ahead of an OPEC+ meeting on supply over the weekend.
Key events for the rest of the week include Eurozone consumer confidence, U.S. jobless claims, University of Michigan consumer sentiment, durable goods, and a speech by ECB President Christine Lagarde.
