November 27, 2022

The review of world markets for November

Basic moments:

  • American market
  • European Union
  • Asian markets
  • Russian market
  • Commodity markets
  • Energy sector
  • Gold
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    American market

    US stocks closed in November, completing the biggest monthly gain since June, although the last trading Friday turned into a day of big sales.

    Dow Jones Industrial Average, S&P 500 andThe Nasdaq Composite rose more than 3% in a month, showing moderate weekly growth, updating highs. The indices were marked by a series of records, the last of which was recorded on Wednesday before Thanksgiving.

    S & P500 for November added 104.09 points or 3.43%, closing the month at 3140.98, fixing a historic maximum at 3154.26 points.

    Dow Jones Industrials grew by 979.99 points in November or 3.62%, having “drawn” an extreme of 28174.97, trading closed at 28051.41.

    Nasdaq 100 added 356.17 points, or 4.43%, as well as the "brothers" recorded a historical maximum, reaching 8445.61, completed 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

    VIX S&P 500 Volatility Index ($ VIX)is at the lowest levels. On Tuesday, the indicator fell to a six-month low of 11.42%; on the last day of trading, it grew by +0.87 to 12.62%. The current VIX 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 are wondering if such a low VIX is a bullish sign.

    Fed Chairman Jerome Powell said nothingnew in November, he noted that lower rates 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 if the economic situation does not change significantly or the current level of rates does not match such as to support the labor market and increase inflation.

    The review of world markets for November

    In America, the holiday sales season has begun, and investors are waiting for household spending indicators, which are the driving force behind the US economy.

    Earlier data on household spending andorders for durable goods showed that the US economy is moving towards the holiday season, having solid soil. The government also reported that the economy was growing faster than anticipated in the third quarter. GDP growth in the third quarter was 2.1%, with an expectation of 1.9%.

    The last trading session in November was the daybig sales due to a new round of tension between China and the United States. Only investors breathed a sigh of relief because of the "clearance" in the trade dispute and the hope of signing the "first phase" of an interim agreement, how did the question arose about 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 exacerbate the situation and negatively affect the prospects for cooperation on “important issues”.

    The S & P 500 fell 0.40% on Friday, the Dow Jones Industrials closed at -0.40%, and the Nasdaq 100 lost 0.49%.

    All exchanges responded to the conflict.

    The Stoxx Europe 600 Index fell 0.4% on Friday;Hong Kong's Hang Seng Index fell 2%, showing the largest decline in two weeks; Chinese Shanghai Composite ended the day with a decline of 0.6%.

    The review of world markets for November

    Corporate News

    Apple has once again become the world's most expensive company.

    It was the first company whose capitalization reached $ 1 trillion. This mark was then reached and overcome 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. share price rose 9.98%.

    In second place in terms of capitalization is currently Microsoft $ 1.14 trillion .; third and fourth place are taken by Amazon and Alphabet at $ 0.89 trillion.

    The review of world markets for November
    Apple shares

    Best Buy shares rose 4.2% afterA consumer electronics retailer said sales rose last quarter, thanks to an increase in online orders, and gave a more optimistic forecast for the holiday shopping season.

    The review of world markets for November
    Best Bay Promotions

    After a strong quarterly report, Disney shares hit a 3-month high. In November, paper went up by 17%.

    The review of world markets for November
    Shares of Walt Disney Company (DIS)

    Hewlett Packard Technology StockEnterprise fell 6.8% after reporting a larger-than-expected decline in revenue over the past quarter. In general, over the month, papers fell 3.83%.

    The review of world markets for November
    HPE shares

    Outsiders of November 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 in November unexpectedly fell 1.9% mom, while expectations were + 0.2% mom, which was the biggest decline in 10 months.

    Eurozone Core Consumer Price Indexgrew by 1.3% in annual terms, exceeding the forecast of 1.2%, at the fastest pace in seven months. Such dynamics may impede the ECB's plans to strengthen economic stimulus measures, experts say.

    In Europe, the Compass Group topped the list of losers after its stock fell 5.2% in London trading. The reason was the announcement of a decrease in profit for the fiscal year.

    The review of world markets for November
    Shares of Compass Group (LSE)

    Mercedes-Benz announces plansstaff cuts over the next two years. The management explains this by saying that a staff optimization program will help free up funds of about 1 billion euros needed to modernize production facilities and bring them into line with updated tightened environmental standards.

    The message triggered a sell-off of Daimler shares.

    The review of world markets for November
    Daimler Stocks

    British American Tobacco Leading Among Bluechips, adding 3.1% after predicting annual revenue growth in the upper half of its long-term target range. In general, in November the paper went up by 12.8%

    The review of world markets for November
    British American Tobacco

    The FTSE 250 Mid-sized Companies Index rose 4%,fixing the highest level since July 2018, as the hopes of ending the long-playing history with Brexit as a result of the elections attracted traders to domestic stocks.

    Asian markets

    Asian stock exchanges were pressured by negative news on Friday. Shanghai Composite Chinese Trade Index Falls To 3-month Low Today

    Japanese stocks were losing in price amid economic concerns. Industrial output in Japan in October fell by 4.2% mom, the largest decline in 1-3 / 4 years.

    Alibaba held a secondary public offering on the Hong Kong Stock Exchange.

    The company's shares began to be traded on the Hong Kong stock exchange in the last week of November. 500 million shares were issued, as a result of which the corporation raised nearly 13 billion US dollars.

    The offering price was $ 22.49; in the first minutes of trading, the price of securities rose to $ 23.98.

    Experts say this is Hong Kong's largest public offering in the past 10 years.

    The company's initial public offering on the NYSE in 2014 raised capital of $ 25 billion.

    The review of world markets for November

    Russian market

    The Russian market in November showed a growingdynamics, the main indices were updated by 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 was at the beginning of the month, then there was some pullback.

    Oil prices exerted pressure on the ruble, which declined amid excess supply on the world market and a slowdown in 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 about the size of the netprofit in the third quarter in the amount of 212 billion rubles, which is 45% less than the same period a year earlier. Total sales amounted to 1.6 trillion rubles in the third quarter, compared with 1.9 trillion for 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 excessive production, while reducing consumption.

    Crude oil futures in the US fell 5.1%, while natural gas 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 large oil producers will not reduce production in the volumes that were 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 quotesweekly data from Baker Hughes, which showed that the number of active oil rigs in the US in the 3rd week ending November 29, was reduced to 668 - a minimum of 2.5 years.
  • 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;
  • global economic slowdown.
  • In the last session of November, oil futurescollapsed by 5%. Statements by representatives of Saudi Arabia and Russia on the eve of the OPEC + meeting about their desire to revise previous agreements led to a bounce in sales.

    January WTI contracts (CLF20) fell 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 showed the worst month since 2016; markets seek clarity in trade negotiations.

    The metal was aiming for its largest monthly decline since November 2016.

    February February Gold Feb ’20 (GCG20) futures fell 3.5% in November, ending the last 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 the Fed interest rates. Investors are closely following the reports of the US Federal Reserve about a possible further easing of monetary policy.

    The review of world markets for November

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