Morning Pulse

@9AM December 03, 2021
Our View on Equity Market:

US indices rebounded during Thursday’s regular trading session. The Dow gained 617 points. The S&P 500 rose 1.4% and the Nasdaq Composite gained 0.8%. The November jobs report is set for release on Friday morning. Investors expect to see solid jobs growth last month, with economists surveyed by Dow Jones predicting 581,000 jobs added in November. Dow futures shed 90 points. The dollar index, edged higher for a third day, rising 0.03% to 96.1. Shares in Asia-Pacific were mixed in Friday morning trade. Chinese tech stocks in Hong Kong plunged after ride-hailing giant Didi announced on social media platform Weibo that it will begin taking steps to delist from the New York Stock Exchange. The Nifty rallied yesterday led by IT and Power stocks. FIIs were net sellers but DIIs bought more than FIIs. BSE was one of the top gainers on crypto trading potential and also due to potential listing of NSE.

Global Markets:

U.S. stock indices ended higher on Thursday, as investors looked past the spread of coronavirus and a fuzzy path for monetary policy and the U.S. economy. Some market participants suggest that the bouncing in the markets due to incoming news has slowed, with markets led by cyclicals and the recovery trade. Fed Chairman brought up the prospect of a quicker taper, which in turn sets the stage for more, and faster, interest-rate hikes.
Data released on Thursday showed that initial jobless claims climbed 28,000 to 222,000 during Thanksgiving week. Meanwhile, the House was prepared to pass an extension of government funding through Feb. 18 in a bid to avoid a partial shutdown this weekend. Market participants suggest that this would add some additional loft to equities.
European stock indices finished lower on Thursday, as concerns persisted over the omicron Covid variant. Euro zone producer prices surged 5.4% MoM in October, for an annual climb of 21.9%. Moreover, the jobless rate across the common currency bloc continued to fall, coming in at 7.3% of the workforce in October after, down from 7.4% in September.

Debt/FX Markets:

U.S. Treasury yields ended mixed on Thursday. The yield on the 10-year Treasury note rose 1 bps, while the yield on the 30-year Treasury bond fell 1 bps. Some Treasury bills due this month were trading at elevated yields on fears the U.S. government could run out of money in as soon as two weeks.

Commodities:                 

Oil futures settled higher on Thursday, as OPEC+ decided to rollover their current policy and raise monthly overall production by 400,000 barrels per day in January. Thus, OPEC+ will be adding more oil to the global supply and thus completely removing the threat of supply shortages at a time when demand is expected to fall.
U.S. gold futures ended lower on Thursday, as investors latched on to signs of a seemingly hawkish tilt in U.S. monetary policy that could rein in rising consumer prices in future. U.S. gold futures settled down 1.2% at $1,762.70.

Disclaimer: The views expressed here are based solely on information available publicly/internal data/other reliable sources believed to be true. Facts presented have been verified, however, the same may contain human errors/ errors from database. The information is provided merely as a complementary service and do not constitute an offer, solicitation for the purchase or sale of any financial instruments, inducement, promise, guarantee, warranty, or as an official confirmation of any transactions or contract of any kind..