Marcus Today Pre-Market Podcast – Friday 10th November

Wall Street finished in negative territory overnight, snapping an eight-day winning streak after Treasury yields jumped as Fed Chair Powell stated that it is too early for the central bank to definitively announce the conclusion of its rate hike cycle, despite not presenting a case for further rate increase. The Dow finished 220 points lower, near worst levels (-0.65%). Dow up 55 points at best. Dow down 253 points at worst. While the S&P 500 and the NASDAQ lost 0.81% and 0.94%, respectively. US treasuries jumped, 10Y yield up 12.4bps and 2Y yield up 9.7bps. A weak 30Y note auction also weighed on market sentiment, raising concerns about the market’s ability to absorb new debt. The USD Index rose, pressuring commodity prices, and the VIX gained 6.9%. On the corporate front, Disney gained 6.7% after its earnings topped forecasts, while Arm Holdings fell 5.2% on weak forecasts, and Telsa fell 5.4% after HSBC analysts rated its stock to the equivalent of sell with a target price 30% lower than its current valuation.

ASX to slip. SPI Futures down 5 points (-0.07%).

• Base metals are broadly lower, pressured by a rising USD. Copper +0.1%, Zinc -0.57%, Nickel -1.77%, Aluminium -0.97%, Lead -0.21%, and Tin -0.26%.
• Gold firmed following Powell’s hawkish speech, up 0.45%.
• 10Y yields: US 4.638%, Australia 4.641%, and Germany 2.661%.
• Oil prices flat, finishing just below $80 a barrel after a sell-off earlier this week. Brent Crude up 0.05%, and WTI up 0.65%.

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