Monday, November 24th, saw a significant upswing in U.S. markets, fueled by a sharp decrease in bond yields. This positive trend followed the appointment of Scott Bessent as the nominated U.S. Treasury Secretary. His nomination eased investor anxieties surrounding government borrowing and trade tariffs, significantly boosting market confidence. This surge wasn’t limited to large-cap stocks; small- and mid-cap stocks, which had previously underperformed, also experienced robust gains, further strengthened by the Federal Reserve’s recent interest rate cuts. However, this positive picture wasn’t universal. Energy stocks saw a decline, mirroring a fall in oil prices amidst ongoing negotiations for a potential ceasefire between Israel and Lebanon. Adding to the economic picture, the Chicago Fed National Activity Index for October revealed a drop to -0.40, down from -0.27 and below the anticipated -0.20. In contrast, the Dallas Fed’s Texas manufacturing index showed improvement, rising to -2.7 in November (from -3), although it slightly missed forecasts of -2.4. Most sectors within the S&P 500 saw gains, particularly real estate, materials, and consumer discretionary. Energy and technology sectors lagged behind. The Dow Jones Industrial Average closed at 44,736.57, up 0.99%; the S&P 500 gained 0.30%, reaching 5,987.40; and the Nasdaq Composite rose 0.27%, finishing at 19,054.84.
The positive sentiment in the US market didn’t entirely translate to Asia. Tuesday’s trading in Asian markets painted a more mixed picture. Japan’s Nikkei 225 experienced a downturn, falling 0.84% to close at 38,411.50. Losses were concentrated in the Power, Automobiles & Parts, and Railway & Bus sectors. Similarly, Australia’s S&P/ASX 200 declined by 0.69%, ending the day at 8,359.40, with the Energy, Gold, and Financials sectors leading the decline. India’s Nifty 50 showed a slight dip of 0.12%, closing at 24,192.95, while the Nifty 500 saw a modest gain of 0.05%, reaching 22,564.00. Losses in India were predominantly seen in the Power, Auto, and Oil & Gas sectors. China also saw declines, with the Shanghai Composite falling 0.12% to 3,259.76, and the Shenzhen CSI 300 dropping 0.21% to 3,840.18. Hong Kong bucked the trend, with the Hang Seng index rising by 0.04% and closing at 19,159.20.
The European markets mirrored the downturn seen in parts of Asia. As of 05:30 AM ET, the European STOXX 50 index was down 0.77%, Germany’s DAX fell 0.54%, and France’s CAC declined by 0.72%. The FTSE 100 index also traded lower, dropping 0.40%. Commodities markets showed some volatility. Crude Oil (WTI) traded higher, up 0.97% at $69.61/bbl, while Brent Crude increased by 0.88% to $73.14/bbl. Natural Gas, however, experienced a slight decrease, falling 0.26% to $3.434. Precious metals showed different trends: Gold traded higher by 0.55% at $2,657.40, and Silver saw a more significant increase of 1.02%, closing at $30.972. Copper saw a slight drop of 0.10%, closing at $4.1550. US Futures markets also indicated a potential downturn, with Dow futures down 0.04%, S&P 500 futures down 0.02%, and Nasdaq 100 futures down 0.01%. Finally, in Forex trading, the U.S. dollar index fell slightly by 0.01% to 106.82. The USD/JPY pair also experienced a decline of 0.27%, reaching 153.80, while the USD/AUD pair rose by 0.21%, reaching 1.5407.
