Macro Scenes:
- Wall Street fell, but small caps: The tech-led rally lost steam after a record month as the stock markets may have been overbought. The US bond yields climbed following the sharpest monthly drop since 2008. At a sector level, Technology and Communication Services were the laggards in the S&P 500. But notably, the small-cap index, the Russel 2000, outperformed, up 0.8%, suggesting peaking rate bets may continue to fuel the stock market rally in December.
- USD rebounded: The USD index was higher following the rising US government bond yields. The Australian dollar fell the most against the greenback, down 0.8% to finish above key support of 0.66.
- Gold swung back: Gold sharply retreated after hitting a record high of above US$2,100 per ounce. The pullback may have been due to profit-taking. However, gold could persist in the uptrend if the US dollar weakens further this month.
- Bitcoin topped 42,000: Bitcoin benefited from the macro tailwind, coupled with the spot ETF optimism. The world’s largest token soared about 160% this year. The momentum may take it higher to further resistance of above 44,000.
- Crude oil extended losses: Crude oil prices extended losses for the third-straight trading day after OPEC+ failed to impress traders with promising output cuts. A strengthened USD also added pressure to commodity prices in general.
- Asian markets to open lower: The Reserve Bank of Australia will decide on its Official Cash Rate (OCR) later today The bank is expected to keep the rate on hold at 4.35% following lighter-than-expected October CPI data. The ASX 200 futures fell 0.42%, the Hang Seng Index futures were flat, and Nikkei futures were down 0.49%.
