Today's key market insights
US markets
Stock futures were down slightly overnight after a negative day for U.S. equities on Wednesday.
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After announcing a half a percentage point interest rate hike, the Federal Reserve said it would continue to increase interest rates throughout 2023 and forecasted that the terminal rate will go above 5.1%, higher than expected.
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U.S. interest rates are currently at a 15-year high of 4.5%.
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The current 10 Year U.S. Treasury yield is set at 3.50270%.
| Market | Price | Move |
| Dow Jones | 33,947.10 | -1.40% |
| S&P 500 | 3,998.84 | -1.79% |
| Nasdaq | 11,239.94 | -1.93% |
| Russell 2000 | 1,840.22 | -2.78% |
Canadian markets
The Canada Food Price Report forecasts that the cost of groceries will increase by 7% next year.
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The report estimates that a family of four will need to spend CA$16,288 on groceries in 2023, an increase of CA$1,065 from this year.
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A single woman in her 40s is expected to spend CA$3,740 on groceries, while a single man would spend CA$4,168.
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Vegetables are expected to rise by 8%, seafood by 6%, fruit by 5%, and milk by 11%. 20% of Canadians will likely continue relying on food banks, the report says.
| Market | Price | Move |
| TSX | 20,242.26 | –1.19% |
European markets
European markets saw losses on Monday despite positive movements in Asia hours earlier.
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The Stoxx 600 was down 0.4% on the day, with almost all sectors ending in the red.
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Food and beverage stocks fell 1.5% on the day, leading losses, while basic resource stocks gained 0.6%.
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SBB, a Scandinavian real estate company, was up 13%, leading gains, while Rational, a German appliance manufacturer, dragged down markets with an 8% drop.
| Market | Price | Move |
| Euro STOXX 50 | 3,956.53 | -0.54% |
| UK (FTSE 100) | 7,567.54 | 0.15% |
| Germany (DAX) | 14,447.61 | -0.56% |
| France (CAC 40) | 6,696.96 | -0.67% |
Asian markets
Shares in Asia were down on Tuesday morning after rising on Monday.
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China briefly paused trading on Tuesday to commemorate former President Jiang Zemin, who died last week.
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China is expected to ease its “Zero Covid” strategy following protests and despite high case numbers.
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Hon Hai Precision Industry, an Apple supplier, was down after reporting that its revenue fell by 11% in November and 29% since the start of October.
| Market | Price | Move |
| S&P Asia 50 | 4,518.19 | 2.13% |
| Japan (Nikkei 225) | 27,857.08 | 0.13% |
| South Korea (KOSPI) | 2,407.17 | -0.50% |
| China (Hang Seng) | 19,485.15 | -0.17% |
| India (SENSEX) | 62,834.60 | -0.05% |
Commodities
Oil prices were down on Monday amid concerns about how future rate hikes could impact the U.S. economy.
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Brent crude lost 3%, while U.S. West Texas Intermediate fell 3.3%.
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Economic and manufacturing activity in China remains suppressed due to COVID-19 regulations and high case numbers, which has caused a decline in demand for oil.
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OPEC+ confirmed that it plans to cut output by 2 million barrels a day through the end of 2023.
| Market | Price | Move |
| Oil (NYSEARCA: OIL) | 29.38 | -3.13% |
| Gold (NYSEARCA: GLD) | 164.39 | -1.72% |
| Silver (NYSEARCA: SLV) | 20.44 | -3.99% |
| Corn (NYSEARCA: CORN) | 25.65 | -0.77% |
| Lumber (NASDAQ: WOOD) | 75.55 | -1.33% |
Currency exchange rates
The U.S. Dollar rose on Monday, following reports that the U.S. services industry saw increased activity in November.
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The non-manufacturing PMI reached 56.5 in November, up from 54.4 in October.
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The U.S. Dollar was down 1.4% last week and 5% in November — its worst month since 2010.
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The dollar was up against all major currencies on Monday, including the Yuan, Yen, Euro, and Pound.
| Market | Price | Move |
| UK(GBP) | £0.82 | 0.68% |
| Europe (EURO) | €0.95 | 0.24% |
| Canada (Canadian Dollar) | $1.36 | 0.58% |
| Japan (Yen) | ¥136.55 | 1.67% |
Cryptocurrency
Bitcoin and Ether were down slightly during Monday trading hours with declining trading volume.
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Ethereum has turned inflationary again after activity on the network fell.
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CRO gained more than 10% after Crypto.com announced that it was launching a series of NFTs with Coca-Cola for the World Cup.
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Nexo said it plans to stop offering products and services in the U.S.
| Market | Price | Move |
| Bitcoin | $17,025.90 | 0.71% |
| Ethereum | $1,264.23 | -1.34% |
| Litecoin | 80.98 | 4.79% |
| Bitcoin Cash | $111.11 | 1.22% |
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Author
Chris Svorcik
Elite CurrenSea
Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.
