It was a predictably quiet end to the week last Friday, with US markets closing early and the rest of the world just as eager to get the weekend started. Despite only having the morning session to work with, US traders still managed to pump both the Dow and S&P 500 to record highs. All three major indices have had a stellar year so far and November was no exception. The Dow gained 7.5% last month, the Nasdaq Comp climbed 6.2% and the S&P 500 finished 5.7% in the black.
The US election is now four weeks behind us, but the outcome continues to provide a steady source of developments for markets to digest. Trade wars, cabinet picks, various world leaders vying for position, etc… Nevertheless, the dust has at least partially settled and the monthly candles have just printed, so what is the verdict?
First things first: the Dollar. The DXY pushed into ranges not seen since 2022 in the weeks following the result, and despite a sizeable pull back last week, the index is still up 1.8% in November. Strength in the Greenback took its toll on a number of currencies, but perhaps the Euro most of all, which lost almost 3% against the USD last month. Those wondering why the Japanese Yen is faring so well may consider the expected Bank of Japan rate hike in December.
Second of all: gold. The precious metal faced severe selling pressure following the election as investors lost interest in the safe-haven narrative. Gold underwent major ups and downs in November before closing the month 3.4% in the red.
Last but not least: crypto. Bitcoin shot up the second it became obvious that Donald Trump had secured the presidency and the elation lasted for much of the month. The original cryptocurrency gained a staggering $26,000 in November and remains coiled up below the all-important $100k mark. Shortly after the result, Gary Gensler, Chair of the Securities and Exchange Commission (SEC), submitted his resignation, to the collective cheer of many in the crypto community. The overwhelming sentiment is that things can only get better no matter who takes his place. The rest of the crypto markets also followed in Bitcoin’s footsteps, with valuations swelling across the board.
Looking at the week ahead shows a relatively crowded economic calendar. Manufacturing and services PMI figures dominate the schedule on Monday and Wednesday. Federal Reserve Chair Jerome Powell is set to speak on Wednesday afternoon. Thursday provides a well-needed respite before Non-Farm Payrolls on Friday.
Advertencia de riesgos : Productos derivados del trading y productos potenciados poseen un nivel más alto de riesgo.
ABRIR CUENTA
