Today's key market insights
|US markets
Stocks rose on Wednesday after Federal Reserve Chair Jerome Powell gave a speech confirming investors’ assumptions that the Federal Reserve is likely to reduce the aggressive rate hikes.
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Following Wednesday’s rally, U.S. equities were up for the month of November. The Dow gained 5.7%, the S&P 500 rose 5.4%, and the Nasdaq jumped 4.4%.
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Some analysts foresee a soft landing for U.S. stocks in 2023, but l don’t believe there will be a bull run next year.
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The current 10 Year U.S. Treasury yield is set at 3.60630%
| Market | Price | Move |
| Dow Jones | 34,589.77 | 2.18% |
| S&P 500 | 4,080.11 | 3.09% |
| Nasdaq | 11,468.00 | 4.41% |
| Russell 2000 | 1,886.58 | 2.72% |
Canadian markets
Kevan Cowan has been appointed as the new chair of the Ontario Securities Commission (OSC).
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Cowan is already a board member and key adviser to the Ontario government on securities and capital markets.
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He was previously the CEO of the Capital Markets Authority Implementation Organization.
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He was also the president of the Toronto Stock Exchange and previously practiced corporate and securities law.
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The OSC is an independent government agency that is responsible for enforcing provincial law.
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Canada is one of the few countries with no national securities regulator equivalent to the SEC. Instead, each province is responsible for regulating securities exchanges in its own jurisdiction.
| Market | Price | Move |
| TSX | 20,200.97 | -0.38% |
European markets
European markets finished November in the green after rising on Wednesday.
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The Stoxx 600 gained 0.6% on Wednesday and finished the month up 6.1%.
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Household goods stocks were up 2.3% to lead markets yesterday. The only sector that finished in the red was chemicals, down 0.2%.
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New figures suggest that the EU’s inflation rate for November will be below investors’ expectations.
| Market | Price | Move |
| Euro STOXX 50 | 3,964.72 | 0.77% |
| UK (FTSE 100) | 7,573.05 | 0.81% |
| Germany (DAX) | 14,397.04 | 0.29% |
| France (CAC 40) | 6,738.55 | 1.04% |
Asian markets
Stocks in Asia closed higher on Wednesday despite Chinese factory activity falling to its lowest level since April and short of investor expectations.
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Australia recorded an annual inflation rate of 6.8% in October, down from 7.3% in September. Housing, food, and transport prices rose the most.
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The Purchasing Managers Index in China was at 48 for November, which indicates that the economy contracted.
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Stocks in China continue to rise on the news that the country is boosting its vaccine strategy and could shift away from its “Zero Covid” policy.
| Market | Price | Move |
| S&P Asia 50 | 4,371.80 | 1.97% |
| Japan (Nikkei 225) | 27,968.99 | -0.21% |
| South Korea (KOSPI) | 2,472.53 | 1.61% |
| China (Hang Seng) | 18,597.23 | 2.16% |
| India (SENSEX) | 63,099.65 | 0.67% |
Commodities
Oil prices were up on Wednesday amid signs that supply may be tightening while demand grows in China.
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Brent crude rose 2.8% and U.S. West Texas Intermediate gained 3.01%.
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Crude oil stockpiles in the U.S. declined by 13 million barrels last week, the largest one-week drop since 2019.
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U.S. oil output increased by 2.4% in September, to 12.27 million barrels per day.
| Market | Price | Move |
| Oil (NYSEARCA:OIL) | 30.37 | 1.98% |
| Gold (NYSEARCA:GLD) | 164.81 | 1.28% |
| Silver (NYSEARCA:SLV) | 20.43 | 1.84% |
| Corn (NYSEARCA:CORN) | 26.42 | -0.83% |
| Lumber (NASDAQ:WOOD) | 74.76 | -0.65% |
Currency exchange rates
The U.S. Dollar declined on Wednesday after Jerome Powell indicated that the Federal Reserve will likely ease its rate hikes.
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In November, the U.S. Dollar Index had its worst month since 2010.
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The index lost 1% on Wednesday to finish the month down 5.10%.
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The USD lost 7.39% against the Japanese Yen in November, the steepest decline since December 1998.
| Market | Price | Move |
| UK(GBP) | £0.83 | -0.89% |
| Europe (EURO) | €0.96 | -0.65% |
| Canada (Canadian Dollar) | $1.34 | -0.53% |
| Japan (Yen) | ¥137.82 | -0.67% |
Cryptocurrency
Crypto markets rose on Wednesday as Bitcoin was back over $17,000.
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So far this year, the crypto market has lost 63% in value.
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Bitcoin fell 18% in November and Ether slumped 21%.
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Kraken said it plans to cut its workforce by another 30%.
| Market | Price | Move |
| Bitcoin | $17,180.70 | 6.01% |
| Ethereum | $1,301.69 | 7.00% |
| Litecoin | $79.45 | 4.86% |
| Bitcoin Cash | $113.55 | 3.31% |
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