Basic moments:
American market
U.S. stocks closed in November, capping their biggest monthly gain since June, although last trading Friday turned into a big sell-off day.
Dow Jones Industrial Average, S&PThe 500 and Nasdaq Composite rose more than 3% for the month, showing moderate weekly gains and new highs. The indices recorded a series of records, the last of which was recorded on the Wednesday before Thanksgiving.
The S&P500 gained 104.09 points or 3.43% in November, closing the month at 3140.98, recording a historical high of 3154.26 points.
The Dow Jones Industrials rose 979.99 points in November, or 3.62%, reaching an extreme of 28,174.97 and closing at 28,051.41.
The Nasdaq 100 added 356.17 points or 4.43%, like its “brethren”, it recorded a historical maximum, reaching 8445.61, and ended the month at 8403.68.
The dynamics of major US indices in November
Sectors closed in the green zone:
In the red zone ended the month of the sector:
Volatility Index VIX S&P 500 ($VIX) is at its lowest levels. On Tuesday, the indicator fell to a six-month low of 11.42%, and on the last day of trading it increased by +0.87 to 12.62%. The current VIX value is well below the August high of 24.81% and just above the April low of 11.03%. Investors believe that bull markets are less volatile than bear markets and wonder if such a low VIX is a bullish sign.
Fed Chairman Jerome Powell said nothingnew in November, he noted that rate cuts this year were due to the fact that the economy did not look as strong as expected. He noted that monetary policy will not change unless the economic situation changes significantly or the current level of rates does not correspond to support the labor market and increased inflation.
The holiday shopping season has begun in America, and investors are awaiting figures on household spending, which drives the American economy.
Earlier data on household expenditures andorders for durable goods indicated that the U.S. economy is heading into the holiday season on solid ground. The government also said the economy grew faster than expected in the third quarter. GDP growth in the third quarter was 2.1%, compared to expectations of 1.9%.
The last trading session of November became the daybig sales due to a new round of tension between China and the United States. Just as investors breathed a sigh of relief due to the “clearance” in the trade dispute and the hope of signing the “first phase” of an interim agreement, the question arose regarding the situation in Hong Kong. President Trump signed a law supporting protesters in Hong Kong; the Chinese Foreign Ministry issued a statement that such US actions aggravate the situation and negatively affect the prospects for cooperation on “important issues.”
Index S& The P 500 fell 0.40% on Friday, the Dow Jones Industrials closed down -0.40% and the Nasdaq 100 lost 0.49%.
All exchange platforms responded to the flaring conflict.
The Stoxx Europe 600 index fell 0.4% on Friday;Hong Kong's Hang Seng Index fell 2%, its biggest decline in two weeks; China's Shanghai Composite ended the day down 0.6%.
Corporate News
Apple Corporation has once again become the most valuable company in the world.
It was the first company whose capitalization reached $1 trillion. This mark was then reached and surpassed by Amazon and Microsoft.
For a while, Apple lost the lead, but at the moment is again the most expensive company in the world.
Apple's November trading ended at $267.25, with a market capitalization of more than $1.18 trillion. the share price increased by 9.98%.
Microsoft is currently in second place in terms of capitalization with $1.14 trillion; The third and fourth places are occupied by Amazon and Alphabet with $0.89 trillion each.
Apple shares
Shares of Best Buy rose 4.2% afterThe consumer electronics retailer said sales rose last quarter, helped by growth in online orders, and gave a more optimistic outlook for the holiday shopping season.
Best Bay Promotions
Following a strong quarterly report, Disney shares hit a 3-month high. In November, securities rose in price by 17%.
Shares of Walt Disney Company (DIS)
Shares of technology company Hewlett PackardEnterprise fell 6.8% after it reported a larger-than-expected decline in revenue for its latest quarter. Overall, securities fell in price by 3.83% over the month.
HPE shares
November outsiders were Home Depot (HD) -6.6%, Booking Holding Inc (BKNG) -7.7%, Occidental Petroleum Corporation (OXY) -6.75%.
European market
Economic problems in the Eurozone continue to bother investors.
Retail sales in Germany unexpectedly fell by 1.9% m/m in November, against expectations of +0.2% m/m, which was the largest decline in 10 months.
Core consumer price index in the Eurozonegrew by 1.3% year on year, exceeding the forecast of 1.2%, the fastest pace in seven months. Such dynamics may hinder the ECB's plans to strengthen economic stimulus measures, experts say.
In Europe, Compass Group topped the list of losers after its shares fell 5.2% in London trading. The reason was the announcement of a decrease in profit for the financial year.
Shares of Compass Group (LSE)
Mercedes-Benz announced plansstaff reductions over the next two years. Management explains that the workforce optimization program will help free up funds in the amount of about 1 billion euros needed to modernize production facilities and bring them into compliance with updated, stricter environmental standards.
The announcement sparked a sale in Daimler shares.
Daimler Stocks
British American Tobacco led the Blues.chips, up 3.1% after forecasting full-year revenue growth in the top half of its long-term target range. In general, securities rose in price by 12.8% in November
British American Tobacco
The FTSE 250 mid-cap index rose 4%,recording its highest level since July 2018 as hopes of an end to the long-running Brexit saga following the election drew traders into domestic equities.
Asian markets
On Friday, Asian stock exchanges were under pressure from negative news. Chinese trade index Shanghai Composite fell to 3-month low today
Japanese shares were losing value amid economic concerns. Japan's industrial output fell 4.2% m/m in October, the biggest decline in 1-3/4 years.
Alibaba conducted a secondary public offering on the Hong Kong Stock Exchange.
The company's shares began trading on the Hong Kong stock exchange in the last week of November. 500 million shares were issued, raising nearly $13 billion.
The offering price was $ 22.49; in the first minutes of trading, the price of securities rose to $ 23.98.
Experts say this is the largest listing on the Hong Kong exchange in the last 10 years.
The company's initial public offering on the NYSE in 2014 raised $25 billion in capital.
Russian market
The Russian market showed growing growth in Novemberdynamics, the main indices updated their highs - the Moscow Exchange Index set a historical maximum at 3009.11 points, the RTS - 1487.82 points, updating a six-year high. The main bullish movement occurred at the beginning of the month, followed by some pullback.
The ruble was under pressure from oil prices, which were declining amid excess supply on the world market and slowing demand.
The growth leaders in November were securities of Yandex, Lukoil, Norilsk Nickel, Surgutneftegaz, although the dynamics were no longer the same as in October.
Completed November trading in the red zone of paper “Aeroflot”, “Tatneft”.
Particular attention was focused on the Gazprom report.
The quarterly profit of the Russian gas giant is falling amid falling export prices and declining exports.
The corporation reported on Friday the size of its netprofit in the third quarter amounted to 212 billion rubles, which is 45% less than in the same period a year earlier. Total sales amounted to 1.6 trillion rubles in the third quarter, compared to 1.9 trillion in the same period the previous year.
On December 2, Gazprom launches its main Sibir gas pipeline to China, with a planned delivery volume of 38 billion cubic meters of gas per year by 2025.
The company will reach such capacities in stages - 5 billion cubic meters in 2020, 10 billion cubic meters in 2021 and 15 billion cubic meters in 2022.
Mosbirge and oil indices
Energy sector
Oil and natural gas prices are under pressure due to concerns about excess production at the same time as lower consumption.
U.S. oil futures fell 5.1% and natural gas futures fell 8.8%.
OPEC + countries should discuss world agreementproduction December 5-6. Over the past three years, OPEC and non-OPEC oil producers have reduced production to balance the market and maintain prices.
Analysts suggest that major oil producers will not cut production to the extent previously planned.
Bullish energy market factors:
Bearish factors:
In the last session of November, oil pricesFutures fell 5%. Statements by representatives of Saudi Arabia and Russia on the eve of the OPEC+ meeting about their desire to reconsider previous agreements led to a wave of sales.
January WTI contracts (CLF20) fell by 2.94 points (-5.06%), Brent crude for January delivery (CBF20) closed -1.44 (-2.25%), gasoline for January delivery RBOB ( RBF20) closed at -0.855 (-5.10%).
Gold
Gold posted its worst month since 2016; markets are seeking clarity in trade talks.
The metal was aiming for its largest monthly decline since November 2016.
February gold futures Gold Feb ’20 (GCG20) fell 3.5% in November, ending the latest session at $1,472.7. per ounce.
Investors hoped that soona “first phase” trade agreement may be signed between the two largest economies in the world, and this will boost global stocks to record levels and reduce demand for safe haven assets such as gold.
Another driver is Fed interest rates. Investors are closely monitoring reports from the US Federal Reserve about possible further easing of monetary policy.
By December 2019, the markets approached with a lot of questions and complete uncertainty. It’s hard to say whether to expect a traditional Christmas rally in such a situation.
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