The 3 topics not to be missed today, what's happening in the markets?
The markets begin a new week with at least 3 key themes to monitor.
Asian stocks are ending the session in losses and US stock futures are trading in the red, on a trading day that began with slowing growth in Chinese industrial profits.
The data weakened optimism following last week's stock gains.
The end of November promises to be crucial for stock markets and investors.
Inflation data from the United States and Europe could in fact influence the markets during the week and the OPEC meeting, postponed due to internal disagreements, could stop, or extend, the recent decline in crude oil prices.
Central banks remain in the spotlight, with any interventions or comments from Powell or Lagarde and other members influencing risk assets and the direction of bond yields.
In this context full of ideas, the markets today begin a significant week with at least 3 themes not to be underestimated.
read also Global economy, the 10 trends of 2024 1.
China in uncertainty Chinese shares led the declines after data showed profits of the nation's industrial companies growing at a slower pace.
The indicator confirmed that the economic recovery remains uncertain.
The Hang Seng China Enterprises Index fell 1.4%, while the CSI 300 closed 1.2% lower in Monday's morning session.
Benchmarks also fell in Australia and Japan.
Subdued growth at China's industrial firms will likely keep firms cautious about expanding or hiring more, which in turn could increase price pressure.
Profits rose just 2.7% in October from a year ago, down from September's 11.9% gain.
“The earnings numbers show that the current momentum of the recovery is still quite fragile,” said Dong Chen, of Pictet Wealth Management, in an interview with Bloomberg Television.
This week, investors will look closely at data on Chinese activity to gauge the health of the world's second-largest economy.
Traders will also evaluate shadow banking stocks after Chinese authorities said they had recently opened criminal investigations into the money management business of Zhongzhi Enterprise Group Co.
The group had last week defaulted on payments of some bonds.
China's central bank has announced that it will encourage financial institutions to support private companies, including forbearance for bad loans.
2.
Gold shines Traders are keeping an eye on gold, which reached a six-month high of $2,018 an ounce in the Asian session and consolidated above 2,000.
The growing belief that the US Federal Reserve is now done raising interest rates and the weakening of the dollar supported prices of the precious metal.
Spot prices rose 0.6% to $2,013.10 a troy ounce in Asian trade, the highest level since mid-May.
Gold's rise has found support primarily from the weakening dollar, which has fallen about 3% against a basket of other currencies this month.
Weak economic data in the United States has strengthened the belief that lending rates in the country may not rise further this year.
3.
Falling oil prices The oil market faces a tense few days ahead of the OPEC+ meeting on November 30, originally scheduled for Sunday but postponed as producers struggled to find a unanimous position.
read also Opec Chaos, what is about to happen to the price of oil? Reports suggest African oil producers are demanding higher production curbs for 2024, while Saudi Arabia may extend its further voluntary production cut by 1 million barrels a day, which is set to expire at the end of December.
“Saudi Arabia and OPEC+ face the challenge of keeping oil markets tight in 2024,” commodities analysts at CBA wrote in a note.
“OPEC+ will need to show significant supply discipline, or at least such capacity, to ease concerns about a deep surplus in oil markets next year,” he added.
The uncertainty has erased crude oil's early gains, with Brent and WTI futures both falling at the moment.