This article was published on November 15, 2024.

Watch For:

U.K. GDP, industrial production; trading update for LandSec

Opening Call:

European stock futures were lower, after Asia stocks broadly fell. The dollar held steady. Gold and oil slipped.

Equities:

European stocks headed for a lower open after Federal Reserve Chair Jerome Powell said overnight that the central bank doesn't need to rush to lower its benchmark interest rate.

"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said at a talk in Dallas on Thursday. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."

To be sure, the Trump trade still dominates news headlines as the president-elect starts building out his cabinet, driving movement in U.S. stocks, bitcoin, bonds and the dollar - but those assets' price actions have become more subdued.

"Now investors are looking back and analyzing what the actual impact of the election is, and they make their time to redo their portfolios and calls with the right sectors and international allocations that they need," said Troy Donohue, head of Americas portfolio trading at BTIG.

"It'll be some time before we see that momentum again, and it'll be more spread out over the coming months," he said.

Data in focus today includes the U.K.'s third-quarter GDP print.

Forex:

The U.S. dollar remains an unabashed beneficiary of Trump's election win - and its relentless rise is causing significant pain for some emerging-market assets and commodities.

"The dollar is overbought and challenging resistance while several metals and emerging markets (EM) are oversold and trying to hold above key support," said Kevin Dempter, analyst at Renaissance Macro Research.

"We'll be watching how they respond to their overbought and oversold conditions closely. A strong response to the overbought condition in the dollar will likely lead to a bullish trend change and vice versa for the metals and EM," he said.

Bonds:

The policy-sensitive two-year Treasury yield edged higher following fresh comments from Powell that indicated the central bank isn't in a hurry to cut interest rates again.

"The risk appears to be tilting towards a shallower cutting cycle given resilient activity and stubborn inflation," Stephen Juneau, a U.S. economist at Bank of America.

A more gradual pace of rate cuts makes the dollar more valuable against currencies from countries where yields are falling faster, while bond yields reflect investors' expectations for long-term Fed rates.

Energy:

Oil fell amid a softer outlook. The International Energy Agency earlier this week trimmed next year's oil-demand growth estimates, citing the impact of China's economic slowdown on consumption.

Chinese demand continues to underperform despite the country's stimulus measures, said XTB MENA market analyst Milad Azar.

The crude oil market is likely to remain capped for now, unless there is a significant demand rebound, Azar added.

Metals:

Gold edged higher, as investors look ahead to more data releases from the U.S.

The precious metal's outlook remains bearish as markets await the release of retail sales due later today, said Bas Kooijman, CEO and asset manager at DHF Capital, adding the December Fed meeting outcome will be key.

Copper rose in Asia after prices dipped overnight. The Chinese market is likely to clear some inventories by the end of the year following recent price drops, Galaxy Futures said.

Prices remain under pressure from a strong dollar and high copper inventory levels globally, it added.

TODAY'S TOP HEADLINES

China's Economy Picks Up, but Still Needs More Help

SINGAPORE-China's economy showed signs of improving last month after a blitz of growth-friendly policies from Beijing, but economists say authorities will still need to do more to keep the momentum going now as Donald Trump's re-election raises the specter of a new trade war with the U.S.

Chinese industrial production slowed slightly in October and the real-estate sector remained in a deep slump, data published Friday showed. But retail sales popped higher and investment in buildings, equipment and other fixed assets held steady.

Powell Says Solid Economy Allows Fed to Consider Rate Cuts 'Carefully'

Federal Reserve Chair Jerome Powell said recent signs of economic health would allow the central bank to take its time in deciding how quickly to continue reducing interest rates, including by potentially slowing down the pace of cuts.

"The economy is not sending any signals that we need to be in a hurry to lower rates," Powell said at a talk in Dallas on Thursday. "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully."

Is Trump Really So Great for Bitcoin?

Bitcoin is now worth more than any U.S.-listed company other than the six biggest. Dogecoin, created as a joke and the first cryptocurrency to have a government department named after it, would make it to the top 200 stocks by value, larger than Johnson Controls International.

The election lit the rocket that crypto enthusiasts hope will take prices to the moon. They are anticipating that President-elect Donald Trump will follow through on his pledge to defenestrate the anti-crypto chief of Securities and Exchange Commission, Gary Gensler, ease regulations on crypto-company listings, exchanges, finance and mining, and create a national stash of bitcoin.

Ben & Jerry's Sues Unilever, Alleging It Was Censored Over Gaza

Ben & Jerry's and Unilever are headed back to court.

The ice-cream brand on Wednesday sued its parent company, accusing the consumer-goods giant of silencing its attempts to speak out in support of Palestinians and threatening to dismantle its independent board.

Israeli Forces Push Deeper Into Lebanon in Widening War Campaign

TEL AVIV-Israel is expanding its ground operation in southern Lebanon, sending troops into villages farther from its border, in what some former senior security officials worry could turn into a war of attrition.

On Thursday, Israel's military for the second day in row said its troops were reaching new targets in southern Lebanon. A day earlier, the military announced six soldiers were killed fighting there, in one of the deadliest single incidents for Israeli troops since the start of the ground operation more than a month ago.

Lenovo Builds on AI Momentum With Earnings Beat

Lenovo Group's earnings grew faster than expected, as the world's largest personal-computer maker began to reap benefits from its bets on artificial intelligence, which could drive the next wave of demand for PCs and beyond.

Net profit for the three months ended September rose 44% from a year earlier to $359 million, the PC maker said Friday, marginally beating the estimate of $355 million, according to a FactSet poll of analysts.

Meta Fined $843 Million by EU Over Marketplace Ads Platform

The European Commission fined Meta Platforms the equivalent of around $843 million, saying it tied its classified-ads platform to its flagship social network, undermining competition.

The commission on Thursday fined the Facebook owner 797.7 million euros, saying its practice of linking its classified-ads platform Marketplace to Facebook gives it a significant distribution advantage that competitors can't match.

Source: Trading View