November Daily Review - 12/11

 

Stocks - U.S. stock indexes opened lower on Thursday after weekly U.S. jobless claims data indicated the Federal Reserve could raise interest rates next month.

St. Louis Fed President James Bullard, a prominent hawk who is ready to increase rates, raised concerns of permanently low rates in industrial nations that could force a rethink of monetary policy.

Economy Indicators - The number of job openings in the U.S. rose more than expected in September, boosting optimism over the strength of the labor market and supporting the case for a U.S. rate hike, official data showed on Thursday.

In a report, the U.S. Labor Department said that the number of job openings, excluding the farming industry, increased to 5.53 million in September from 5.37 million a month earlier. Analysts had expected the number of job openings to hold steady at 5.37 million.

The report has garnered more attention lately, as Federal Reserve Chair Janet Yellen often cites the survey when assessing the state of the labor market.

Economy Indicators - A signal from European Central Bank president Mario Draghi that further policy easing is coming next month pushed the euro and government bond yields lower on Thursday but failed to lift stocks, which buckled under the weight of gloomy corporate news.

The gap between 5-year U.S. and euro zone bond yields hit its highest since 1999, while the dollar's rebound helped push crude oil to lows not seen since late August and copper to a six-year low.

Commodities - Gold prices sank to the lowest level since February 2010 on Thursday, as investors awaited comments from a range of Federal Reserve speakers for further indications on the likelihood of a December rate hike.

Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $5.00, or 0.46%, to trade at $1,079.90 a troy ounce during U.S. morning hours. It earlier fell to $1,073.40, the lowest level in more than five years.

Economy Indicators - The U.S. Federal Reserve must weigh the effects of post-crisis financial regulations and new channels through which policy affects markets as it prepares to raise interest rates, Fed Chair Janet Yellen said on Thursday.

Yellen, kicking off a research conference on policy transmission and implementation after the 2007-2009 financial crisis, said the U.S. central bank also must weigh the disadvantages of its policy actions in light of new tools meant to help the Fed raise rates.

Forex - The U.S. dollar climbed to fresh one-month highs against its Canadian counterpart on Thursday, after data showed that U.S. jobless claims held steady at a two-month high last week, but remained in territory consistent with a strengthening labor market.

USD/CAD hit 1.3339 during European afternoon trade, the pair's highest since October 1; the pair subsequently consolidated at 1.3338, gaining 0.54%.

Economy Indicators - New U.S. applications for unemployment benefits last week held steady at levels consistent with sustained labor market strength that could encourage the Federal Reserve to raise interest rates next month.

Initial claims for state unemployment benefits were unchanged at a seasonally adjusted 276,000 for the week ended Nov. 7, the Labor Department said on Thursday. The prior week's claims were unrevised.

 

  

 

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