Covid outbreaks in China and slowing US CPI and PPI supported the dollar. Oil fell, gold rose, and cryptocurrencies were reckless.

Updated time: 23 Nov, 2022, 15:10 (UTC+04:00)

Stocks:

After Wall Street ended mixed last week, U.S stock futures moved in a tight range as slowing CPI and PPI data grasped investors’ attention from the Fed's hawkish comment. While Dow Jones futures headed down 0.1%, Nasdaq futures reversed to trade higher 0.1%. Only S&P 500 futures stayed unchanged.

Covid outbreaks in China and slowing US CPI and PPI supported the dollar. Oil fell, gold rose, and cryptocurrencies were reckless.

Asian stocks were worse, joining the red territory as worries over the economic collapse amid COVID-19 outbreak in China. The MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1% from their two-month high. Japan's Nikkei eased 0.1% and South Korea lost 1.1%.

News from the FOMC's meeting would be the week’s main focus, which will give investors more insights to the interest rate path in December besides data from PMI readings and general consumer sentiments.

Commodities:

Fears of lack of supply, rate hikes, and anxiety about China's fuel demand contributed to drag down oil prices that possibly hit their two-month lows. The front-month Brent crude futures spread significantly shrunk last week while WTI flipped into a contango, reflecting diminishing supply concerns. Today, Brent crude futures dipped 0.3% to $87.34 while U.S WTI crude futures lost 8 cents to $80 per barrel.

Gold prices hovered around key support levels of $1,750 since markets could sense the Fed’s intention in upcoming monetary policy. Spot gold added 0.1% to $1,752.81 while gold futures moved slowly to $1,754.90.

Currencies:

Dollar appeared positive and rose 0.1% to 107, raising its index to 106.900 against other major peers as the Fed’s move was much clearer ahead. It saw a soft battle against the yen at 140.26 after last week’s bounce from a low of 137.60. The euro fell from its four-month high to $1.0327.

Cryptocurrencies:

Crypto decided not to have much gratitude for four days before Thanksgiving. Bitcoin gave up 3% but still held above its recent $16,000 support. The second largest cryptocurrency Ethereum plummeted almost 8% to trade at $1,115.

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