TRACKRECORD DAILY
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TRACKRECORD DAILY

Inflation scare (yet again…)

The dip may seem worrying but it is an opportunity.

TRADING TIP

See the world for what it is

One mistake that many traders make is that they often look at the world for what they want it to be, rather than for what it is. This results in making decisions that are coloured by their personal biases regardless of what the facts say.

DAY AHEAD

Nothing noteworthy on the horizon today.

TRADING PLAN

1. Currencies:
Keep short USD and long NZD, & CNH. currencies remain stuck in a range. Keep short USD and be patient.

WHAT HAPPENED YESTERDAY

Market movements as of New York Close 10 Nov 2021
  • The Dollar Index (+0.95%) jumped sharply on Wednesday, hitting its highest level since July 2020, after U.S. consumer prices surged to their highest rate since 1990, fueling speculation that the Federal Reserve may need to raise interest rates sooner than expected. What’s more, the $25 bln 30-yr bond auction saw weak demand in the afternoon, further contributing to the selling in Treasuries. The US 2-year Treasury Bond yield settled higher by 10 basis points to 0.51%, and the 10-yr yield settled higher by 10 basis points to 1.56%. WTI crude futures fell -3.5%, or $2.93, to $81.23/bbl amid bearish inventory data.
  • S&P 500 fell -0.82% on Wednesday, as the market cooled off due to the hot US inflation data for October and a corresponding pop in Treasury yields. The Nasdaq (-1.44%) and Russell 2000 (-1.6%), while the Dow Jones Industrial Average fell -0.66%.
  • After yesterday’s reports that Evergrande was on the brink of formal default as it has supposedly missed an interest payment, a bondholder came out this morning to say that the company has made an interest payment of $148 million on Wednesday, meeting the payment deadline.
  • Elsewhere, Rivian’s (RIVN 100.73, +22.73, +29.1%) IPO served as another excuse for investors to take profits, or at the very least step away from the market. RIVN closed below its opening price of $106.75 but still finished 29% above its IPO price of $78 per share.

HEADLINES & MARKET IMPACT

Biden pledges to battle ‘too high’ prices as inflation surges

Notable Snippet: On Wednesday, Biden described reversing inflation as “a top priority for me.”

Biden to sign $1 trillion infrastructure bill on Monday

Notable Snippet: U.S. President Joe Biden will sign a bipartisan infrastructure bill on Monday at a ceremony that will include members of Congress who helped write the legislation, the White House said on Wednesday.

OPEC makes case for fossil fuels at UN climate conference

Notable Snippet: Prince Abdulaziz told delegates that negotiators should be “conscious of the special circumstances of the less developed countries”, some of which have been resisting calls for aggressive moves away from fossil fuels because of the economic costs.

SENTIMENT

FX

STOCK INDICES

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