Global Market Quick Take: Asia – November 26, 2024

Global Market Quick Take: Asia – November 26, 2024

Macro 6 minutes to read
Saxo Be Invested
APAC Research

Key points: 

  • Macro: Trump announced 25% tariffs on Canada and Mexico goods, additional 10% on China
  • Equities: Dow Jones outperformed, adding 1% as Boeing climbs 
  • FX: USD strengthened after Trump announced tariffs 
  • Commodities: Oil fell over 2%; Gold and Silver dropped over 3% 
  • Fixed income: 2s10s yield curve inverted for the first time since October 7 

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 QT 26 Nov

Disclaimer: Past performance does not indicate future performance.

Macro:  

  • Trump announced that he will impose 25% tariffs on all Mexico and Canada goods to clamp down on illegal immigration and drugs into US and an additional 10% tariff on Chinese goods.  
  • The European Union is planning to impose sanctions on several Chinese companies, alleging that they assisted Russian firms in developing military drones used in the conflict against Ukraine. 

Equities:

  • US – S&P 500 gained 0.3% and Dow Jones outperformed once again, adding 440 points as Boeing gained 2.5% and United Health Group added 2.5%. Boeing has added 10.7% in the past 2 weeks after the strikes ended.
  • Japan - Nikkei 225 Index rose 1.3% to 38,780, and the Topix Index increased 0.71% to 2,716, marking the second consecutive session of gains for Japanese stocks. This rise followed recent pressures and mirrored gains in US futures after President-elect Donald Trump nominated hedge fund manager Scott Bessent as Treasury Secretary, reducing market uncertainty. 
  • Earnings – CrowdStrike, Dell, Autodesk, Workday, Best Buy 

FX: 

  • USD strengthened, reversing most of Monday's decline, after President-elect Donald Trump announced plans for additional tariffs on key trading partners. The CNH dropped 0.4% following Trump's announcement of an extra 10% tariff on Chinese goods. He also proposed 25% tariffs on all products from Mexico and Canada, causing their currencies to fall by over 1% each. 

Commodities:  

  • WTI crude fell 3.2% to $68.90 on potential Israel-Hezbollah cease-fire. Focus also on Ukraine-Russia tensions and Iran's nuclear plans. OPEC+ may keep production cuts, with a meeting on December 1. Brent crude fell 2.9% to $73.
  • Gold fell below $2,620 after profit-taking and risk shift due to Scott Bessent's Treasury nomination. Investors await Fed minutes and inflation data, while silver dropped 3% to $30.20. 
  • European natural gas futures rose above €48.2/MWh due to colder weather forecasts and uncertain supply. Russian exports via Ukraine are stable but lower, with flows ending in December. 

Fixed income: 

  • Treasuries rallied after Scott Bessent was named as President-elect Trump's Treasury Secretary pick, pushing yields down by at least 10 basis points across the curve. A strong 2-year note auction and a large 10-year futures block purchase further supported gains. The 2s10s and 5s30s spreads tightened, with the 2s10s yield curve inverting for the first time since October 7. 

For a global look at markets – go to Inspiration.

 

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