MARKET WATCH: 20th November 2023

BY LAWRENCE J. | Updated November 20, 2023

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Financial Analyst/Content Writer, RADEX MARKETS Lawrence J. came from a strong technical and engineering background before pivoting into a more financial role later on in his career. Always interested in international finance, Lawrence is experienced in both traditional markets as well as the emerging crypto markets. He now serves as the financial writer for RADEX MARKETS. đọc thêm

There may have been a change in sentiment. Markets received one of the signals they were looking for after it was revealed early last week that inflation figures in the US were down. The Federal Reserve has made it abundantly clear that getting inflation under control remains its prime objective for the time being. Low inflation, ideally around 2%, sets the stage for Jerome Powell to enact lower interest rates and ease the monetary supply. With this scenario at the back of everyone’s minds, it is little wonder that the Dollar Currency Index took a hit, falling 1.88% last week.

The greenback’s complete dominance we have seen in recent years has put a lot of pressure on foreign currencies and equities alike. While one inflation-related data point is a good start it is by no means justification enough to change course just yet. The next FOMC meeting is still three weeks away and although the odds of another rate hike are low, traders have been surprised before.

The inflation data was a good enough excuse however for all major indices to surge last week, with the Nasdaq Composite, S&P 500 and Dow Jones Industrial Average gaining 2.37%, 2.24% and 1.94% respectively. In Japan, the Nikkei 225 had an excellent week, gaining 3.12% to close at 33,585 Yen. The Japanese index is nearing an interesting point in its chart, getting comfortable with an area that puts it within sights of its previous all-time high, a record that has stood for 34 years. In Hong Kong, things do not look so promising. The Hang Seng index made its peak for the year back in January and has been on a slow but steady downtrend ever since. The Shanghai Composite has exhibited a similar pattern, peaking in May and then showing very little optimism. A quick word on European markets to wrap up: the German Dax was up 4.49% on the week, the French CAC 40 following behind with a 2.68% gain and the UK FTSE 100 managing a bit more neutered 1.95%.

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MARKET WATCH: 20th November 2023