Market drivers – US Session – 18-11-2021

Mohamed Abdelhamid 19 November, 2021 2:50 am Commodities, Cryptocurrency, Forex Market, Global Stock Market, Market Update

US shares markets witnessed a mild improvement in trading sentiment, despite printing a mixed daily performance for Thursday.

The reason could be linked to the strong US data and comments from the Fed policymakers, as well as a pullback in the US inflation expectations and the Treasury yields.

The Dollar Index’s pullback continued on Thursday, with the index falling back to the 95.50s ahead of the start of the Asia Pacific trading session. Even further positive US data failed to push the US dollar up.

The European Central Bank’s President Christine Lagarde is set to deliver a speech Friday, 19 November, amid traders and investors’ speculations that the Eurozone central bank could lag behind Fed and world peers on rate hike decision.

Economic Data
The drop of weekly initial jobless claims to a new post-pandemic low at 269K was among remarkable economic data for Thursday.

Philadelphia Fed manufacturing index surged over predictions. The Philadelphia Fed’s manufacturing activity diffusion index reached 39 as of Nov. 18, according to November’s Manufacturing Business Outlook Survey, compared to 23.8 in October.

That figure is the highest since April and has only been reached two other times since 2008. Forecast for manufacturing index in Philadelphia was 23.

On the other hand, The Tenth District Manufacturing Survey’s Composite Index fell to 24 in November versus 31 in October. The latest index came in at 24, down 7 from last month’s 31, indicating continued expansion in November, but at a slower pace according to Kansas City Fed. The future outlook ticked up to 35. Quarterly data for this indicator dates back to 1995, but monthly data is only available from 2001.

The US EIA has reported a 26-billion-cubic-foot weekly climb in natural-gas supplies. The U.S. Energy Information Administration reported on Thursday that domestic supplies of natural gas rose by 26 billion cubic feet for the week ended Nov. 12.

Following the data, December natural gas traded up by 13.4 cents, or 2.8%, at $4.95 per million British thermal units. Prices were at $4.961 shortly before the data.

The Conference Board Leading Economic Index® (LEI) for the U.S. increased by 0.9 percent in October to 118.3 (2016 = 100), following a 0.1 percent increase in September and a 0.7 percent increase in August.

The Conference Board Coincident Economic Index® (CEI) for the U.S. increased by 0.5 percent in October to 106.3 (2016=100), after remaining unchanged in September and a 0.1 percent increase in August.

The Conference Board Lagging Economic Index® (LAG) for the U.S. increased by 0.4 percent in October to 107.4 (2016 = 100), following a 1.0 percent increase in September and a 0.3 percent decline in August.

Other Developments
Bitcoin continued to slide on Thursday, trading down more than 2% and falling as low as $58,283. The most famous cryptocurrency is now very apart from its highs around $69,000, recorded on November 10.

Governments from a number of the world’s biggest economies said on Thursday they are considering the release of oil from their strategic reserves.

The announcements follow a rare request by the United States for a coordinated move to ease global energy prices and ahead of a meeting of major oil producing countries.

Biden’s oil price approach is reaping desired reaction even before he takes an actual action. US crude futures have fallen about 7% from October peak as gasoline pump prices still at 7-year highs, but stabilized.

President Joe Biden, battling the political consequences of the strongest inflationary surge in decades, has spent a month trying to talk down the price of oil. And for now, it’s working.