Markets Mixed on Eve of Key US Inflation Data

  • Market Overview
Adriaan Pask
https://www.psg.co.za/

Markets were mixed on Wednesday as investors focused their attention on the results of the US midterm elections and today’s US inflation report. At 18h00 the Dow fell nearly 500 points, the S&P 500 slipped 1.40%, and the Nasdaq tumbled 1.80% on ambiguity about the overall result of the midterm elections. Early indications showed a closer-than-expected race between Democrats and Republicans, with the latter still maintaining control of the US House of Representatives, while the Senate is still up for grabs. Investors are also looking forward to the October 2022 inflation data report, due later today, for clues on how far the US central bank will tighten financial conditions to tame inflation.

Markets in Europe struggled for traction on Wednesday with all major indices closing slightly lower. The continent’s Stoxx 600 , Germany’s DAX and the FTSE 100 were all pulled down by retreats in tourism and leisure counters.

Chinese markets also fell with Hong Kong’s main index losing 1.37% amid mounting fears that China might face more deflationary pressure due to weak demand. On the data front, producer prices fell to -1.30% in October 2022 from 0.90% previously. Moreover, China’s inflation rate eased to 2.10% y/y in October 2022 from 2.80% recorded in the previous month and below market expectations of 2.40%. Japan's Nikkei fell 0.56% tracking weaker US markets.

However, the local bourse reversed the previous day’s losses on Wednesday driven by precious metals counters. Gold Fields (JO: GFIJ ) significantly outperformed after rising 21% on the day. Meanwhile, the local power utility extended stage 2 load shedding after another power station broke down. However, the rand firmed at 18h15 local time, trading at $17.60 to the US dollar.

In commodities, Brent crude traded lower on Wednesday, hovering below the $95 mark, while gold was flat at $1 712 an ounce at 18h40 local time, pulled down by demand concerns as Covid-19 cases increased in China.

PSG Wealth Daily Investment Update, 10 November 2022


Read full report

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search