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 As traders awaited President-elect Donald Trump’s cabinet choices and evaluated the outlook for Federal Reserve easing, Asian equities increased on Tuesday, while U.S. bond rates and the currency stayed below recent multi-month highs. Traders are leveraging the recent market weakness to purchase equities at discounted prices, despite concerns regarding the outlook for interest rates. Markets were also supported by substantial gains in mining and energy stocks, which were led by the increasing prices of commodities. Although the potential for significant moves are somewhat constrained by Nvidia’s impending earnings reports on Wednesday, tech shares rose in tandem with Wall Street’s comeback from last week’s sharp losses. According to CME FedWatch, market bets on a quarter-point interest rate cut at the Fed’s next meeting in December have dropped to less than 59% from 62% the day before and more than 65% a week ago. Markets view Trump’s projected fiscal expenditures, higher tariffs, and tougher immigration as inflationary, which might impede Fed rate cuts at a time when a string of strong economic data is already preventing them. Trump has started to nominate people; last week, he filled jobs in the defence and health sectors, but the Treasury secretary and trade representative, two crucial positions for the financial markets, have not yet been revealed.The data slate in Europe today is scant, with the main event being the final consumer inflation figures for the euro zone in October. The U.S. will only see housing data. However, there are numerous central bank speakers, including Kansas City Fed President Jeffrey Schmid later in the day. Ahead of that, Bank of England Governor Andrew Bailey and his peers will appear in parliament, where they are likely to face questions about the implications of the government’s expansive budget and the potential impact of Trump’s trade policies.
 Overnight Newswire Updates of Note

  • Germany, Finland Warn Of ‘Hybrid Warfare’ After Sea Cable Cut
  • BoE’s Greene Reinforces Case For Cautious Interest-Rate Cuts
  • UK Retailers Warn Chancellor: £7B Annual Hit From Budget Changes
  • UK PM Calls For ‘Consistent, Durable’ UK-China Ties In Xi Meet
  • China Tells Local Funds To Stop Buying LGFV Bonds Via HK Link
  • China’s Stimulus Lifts Tax Revenue For First Time This Year
  • BoJ To Bid Farewell To Stimulus Era, Justify Rate Hike Reviews
  • JGBs Consolidate; Backed Hopes BoJ May Skip Dec Rate Hike
  • RBA Sees Rate As Appropriate, Discusses Policy Scenarios
  • Dollar Consolidates; May Weighed By Lower Treasury Yields
  • G20 Waters Down Ukraine Support Amid Peace Talks Pressure
  • S&P Sees Some Signs Of A US Credit Bubble As Spreads Tighten
  • DoJ Will Push Google To Sell Off Chrome To Break Search Monopoly
  • Trump To Meet Privately With Coinbase CEO Brian Armstrong

    •           (Sourced from reliable financial news outlets)
     FX Options Expiries For 10am New York Cut (1BLN+ represents larger expiries, more magnetic when trading within daily ATR)

  • EUR/USD: 1.0500 (567M), 1.0520 (450M), 1.0540-50 (1.4BLN), 1.0565-75 (531M)
  • 1.0590-1.0600 (1.8BLN), 1.0610-15 (315M), 1.0625-30 (541M), 1.0650 (2.4BLN)
  • USD/CHF: 0.8765 (220M), 0.8800 (422M)
  • EUR/CHF: 0.9350 (340M), 0.9400 (370M)
  • GBP/USD: 1.2650-60 (513M), 1.2800 (237M)
  • AUD/USD: 0.6475-85 (450M), 0.6500 (487M), 0.6600 (2.1BLN)
  • NZD/USD: 0.5895 (300M). AUD/NZD: 1.1035 (348M)
  • USD/JPY: 154.50 (309M), 155.50 (320M)
     

    • CFTC Data As Of 15/11/24

  • Bitcoin net short position is -1,798 contracts
  • Swiss franc posts net short position of -32,694 contracts
  • British pound net long position is 56,050 contracts
  • Euro net short position is -7,437 contracts
  • Japanese yen net short position is -64,902 contracts
  • Equity fund managers raise S&P 500 CME net long position by 86,527 contracts to 1,079,480
  • Equity fund speculators increase S&P 500 CME net short position by 94,124 contracts to 288,809
  • Speculators trim CBOT US 2-year Treasury futures net short position by 62,488 contracts to 1,423,871
  • Speculators trim CBOT US 10-year Treasury futures net short position by 2,469 contracts to 815,801
     

    • Technical & Trade ViewsSP500 Bullish Above Bearish Below 5960

  • Daily VWAP bearish
  • Weekly VWAP bullish
  • Below 5790 opens 5700
  • Primary support 5795
  • Primary objective 6100

    • EURUSD Bullish Above Bearish Below 1.0650

  • Daily VWAP bullish
  • Weekly VWAP bearish 
  • Above 1.07 opens 1.08
  • Primary resistance 1.0950
  • Primary objective 1.0380

    • GBPUSD Bullish Above Bearish Below 1.2750

  • Daily VWAP bullish
  • Weekly VWAP bearish
  • Above 1.28 opens 1.30
  • Primary resistance 1.3050
  • Primary objective 1.25

    • USDJPY Bullish Above Bearish Below 154

  • Daily VWAP bearish
  • Weekly VWAP bullish 
  • Below 154 opens 152
  • Primary support 148
  • Primary objective is 157.50

    • XAUUSD Bullish Above Bearish Below 2600

  • Daily VWAP bullish
  • Weekly VWAP bearish
  • Below 2590 opens 2530
  • Primary support 2530
  • Primary objective is 2800

    • BTCUSD Bullish Above Bearish Below 85000

  • Daily VWAP bullish
  • Weekly VWAP bullish
  • Below 84000 opens 80000
  • Primary support is 64000
  • Primary objective is 100,000

    •  More By This Author:FTSE Sees A Slow StartTo The Week, As 8k Support Remains Under Scrutiny
    S&P 500 Weekly Action Areas & Price Objectives – Monday, Nov. 18
    Daily Market Outlook – Monday, Nov. 18

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