Market momentum: US inflation trends and global optimism propel stocks [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

A slower-than-anticipated inflation rate in the US, coupled with politicians averting a government shutdown extended the US stocks and bond rally last week.

US stock optimism extends globally, with the European Stoxx testing the 200-DMA resistance and the Japanese Nikkei reaching a 33-year high. Japan's supportive central bank, a cheap yen, and strong company earnings contribute to investor interest.

This week, attention shifts to the US 20-year bond auction, the Federal Reserve (Fed) minutes and Nvidia earnings.

In energy, US crude recovers as speculation that OPEC could extend production cuts throws a floor under the recent selloff. The next OPEC meeting is scheduled for November 26th and Saudi considers doubling its 1mbpd supply cut. It’s a risky move and it could go both ways.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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