Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

14:20

Trading in Europe continued with moderate increases, as did the futures trading arena on Wall Street indices.

In the commodity market, increases of 2.5%-3% are recorded in crude oil prices. US crude is trading around $79.2 per barrel, and Brent crude is trading around $85.5 per barrel.

Bank Leumi’s chief economist, Dr. Gil Michael Bafman, states in his weekly review that the global oil supply is expected to decrease during 2023, following the cut in OPEC+ production quotas along with the expected decrease in Russia’s oil output. Alongside this, the process of releasing crude oil from the reserve The US strategy is planned to be completed by the end of the year, and the US is even planning a renewed increase in inventories later, he says. “Also, the recent weakening of the dollar, against the background of a certain moderation of expectations for an interest rate increase, is expected to contribute to an increase in the price of oil. In an overall view, the forecast is that the price of Brent oil will be around $90 per barrel at the end of 2022. The price per barrel is expected to decrease during 2023, a decrease in price without which the market is not expected to balance, but to be in a state of excess supply.”

13:15

UK Macro: In the month of October, mortgages were granted in Great Britain to the extent of 3.97 billion pounds, a figure significantly lower than the forecasts for the amount of 5.02 billion pounds. The volume of net loans granted to private individuals last month amounted to 4.7 billion pounds, also in this case much lower than expected (6.7 billion pounds).

Volatility in Europe: trading in the main stock exchanges is once again going up slightly. Dax rises by 0.1%, Kac by 0.2%, the British FTSE maintains an increase of about 0.6%. On Wall Street, the Dow Jones contracts are stable, while the S&P 500 and Nasdaq contracts are up 0.3% and 0.5%, respectively.

11:50

Trade in Europe is moving towards a mixed trend. The DAX index in Frankfurt is now retreating by 0.3%, and KAC is down in Paris by 0.1%, and declines are also recorded in Madrid, Milan, Zurich and Brussels. The Potsi index in London continues to climb by about 0.5%, and in Vienna the trend is still positive.

On Wall Street, contracts rise by 0.1% to 0.5%.

Elbit Systems The dual falls by 8% in early trading in New York at the same time as its decline in Tel Aviv. The defense company reported a decrease in third quarter revenues ($1.34 billion, compared to $1.36 billion in the corresponding quarter last year) and an even more significant decrease in the net profit line (Non-GAAP), which amounted to $62.6 million (4.6% of sales), compared to -103.1 million dollars in the corresponding quarter (7.6% of sales).

10:20

Trading in European stock markets opened with a moderate positive trend. The German DAX index rises by about 0.1%, the British Potsey advances by 0.7%, and the French CAC by 0.3%.

Macro Europe: A pleasant surprise in the rate of inflation in Spain – the consumer price index recorded an annual increase of 6.8% in November, when the expectation was for a rate of 7.4%. This is a preliminary and not final figure, but in any case it is a considerable moderation compared to the measurement of 8.9% in September and 7.3% in October. On a monthly level, this is a decrease of 0.1% in the index, compared to an increase of 0.3% last month. The IBEX index in Madrid rises by 0.2%.

In Switzerland, there was a negative surprise in the GDP sector: the economy expanded in the third quarter by 0.2%, a tenth of a percent lower than the forecast. The annual rate of growth stands at 0.5%, when expectations were for an annual growth of 1%. The flagship index in Zurich traded stably.

In Hong Kong, the Hang Seng index closed with a sharp jump of 5.3%. For the first time in a week, it was reported that there is a decrease in the number of corona infections in China.

09:15

The Nikkei index in Tokyo closed down 0.5%, contrary to the positive trend prevailing in Asian stock markets. The South Korean Kospi index climbed by 1%, as did the Taiwanese flagship index, the Sydney Stock Exchange advanced by about 0.3%, in China the Shenzhen and Shanghai indices jumped by 2.3%, and in Hong Kong the Hang Seng index is now climbing by 4.2%.

Wall Street contracts are up 0.3% to 0.6%, while bond yields have moved to slight declines. The 10-year bond yield is down 2 points to 3.68%, and the 2-year bond yield is back by about 3 points and stands at 4.43 %.

07:55

In Asia this morning, sharp increases are recorded after reports of a press conference to be held by the government in China, with investors optimistic about the easing of the strict corona restrictions that have led to demonstrations and riots in the country. The Hang Seng index soars by about 4.5% led by technology stocks, and Chinese stock markets have gains of 2% or more.

The real estate giants Country Garden and Longford stand out positively in Hong Kong with a double-digit jump. The Heidilau restaurant chain also jumps by about 12.5%, hoping that there will be an easing of the closure policy in the country. Also Alibaba, Meituan, Ping, J.D.com, Baidu and Xiaomi are gathering interest and jumping at rates of 6-7% each. Almost all Hang Seng stocks are painted green.

The Nikkei index in Tokyo traded slightly lower, amid disappointment over the unemployment rate in Japan, which remained at 2.6% in October, despite the expectation that it would decrease by a tenth of a percent. Retail sales in Japan rose 4.3%, when they were expected to rise 5%.

In New York, futures are up modestly after locking in the red last night. The Nasdaq lost 1.5%, as did the S&P 500, and the Dow Jones shed 1.4%. Government bond yields, which retreated slightly last night, are steady this morning. The 10-year bond yield is up a point and stands at 3.71%, and the two-year bond yield is 4.46%, similar to yesterday’s level.

American oil prices hit an 11-month low yesterday, but towards the end of the evening they changed direction and started to rise. At this time, increases of up to 2% are recorded, when the price of American oil is $78.4 per barrel, and the price of Brent oil is $84.8.

Natural gas plunged nearly 19% last night, after Russia’s Gazprom announced that it would not curb gas deliveries to Moldova via Ukraine, as it had threatened, easing fears that it would stop supplies on the last remaining active route to Europe. This morning the price increases by about 1.5%.

Slight increases are recorded in the crypto market. Bitcoin is trading around 16.4 thousand dollars, and Ethereum is at the level of 1,200 dollars.

Later in the day, growth data will be published in Switzerland (expected to increase by 1%) and the consumer price index in Spain (which is expected to register an annual increase of 7.4%) and Germany (expected to have an annual inflation rate of 10.4%). The house price index in the US will also be published.

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