March 28, 2024

The review of world markets for November

Basic moments:

  • American market
  • European Union
  • Asian markets
  • Russian market
  • Commoditymarkets
  • Energy sector
  • Gold
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    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&#038;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&#038;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 review of world markets for November
    The dynamics of major US indices in November

    Sectors closed in the green zone:

  • health care + 5.5%;
  • industrial goods + 3.4%
  • consumer goods + 3.2%
  • technology + 3.1%
  • service industries + 3.0%
  • finance +1.9;
  • In the red zone ended the month of the sector:

  • base materials -0.8%;
  • utilities -1.8%;
  • conglomerates -13.0%
  • The review of world markets for November

    Volatility Index VIX S&#038;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 review of world markets for November

    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&#038; 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%.

    The review of world markets for November

    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.

    The review of world markets for November
    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.

    The review of world markets for November
    Best Bay Promotions

    Following a strong quarterly report, Disney shares hit a 3-month high. In November, securities rose in price by 17%.

    The review of world markets for November
    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.

    The review of world markets for November
    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.

    The review of world markets for November
    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.

    The review of world markets for November
    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

    The review of world markets for 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.

    The review of world markets for November

    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.

    The review of world markets for November
    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:

  • decrease in production by OPEC + producer countries, valid until March 2020;
  • reduced supplies due to US sanctions on Iran and Venezuela;
  • supporting factor for oil companiesquotations became weekly data from Baker Hughes, which showed that the number of active oil rigs in the US in the third week ending November 29 fell to 668, a 2.5-year low.
  • Bearish factors:

  • steady growth in US production of both oil andand natural gas keeps reserves high. According to the latest EIA report, US oil production rose 0.8% to a new record high of 12.9 million barrels per day. At the same time, weather conditions contribute to lower energy costs;
  • investors expect the end of a protracted trade war between the US and China, uncertainty puts pressure on energy markets;
  • slowdown in the global economy.
  • 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%).

    The review of world markets for November

    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.

    The review of world markets for November

    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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