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Snippets Markets’ Morning Call

Markets react positively with Powell’s recommendation for a second term



Snippets Morning Call
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[Tuesday, November 2021] – The Snippets Morning Call – Jerome Powell’s reappointment fuels bets on stimulus withdrawal in the first half of 2022.

Asian equities ended Tuesday on a mixed basis, while Wall Street futures traded lower after a bounce in US Treasury and Dollar yields as Jerome Powell was reappointed to lead the Federal Reserve fueling bets on a pullback faster than the current monetary stimulus.

Hong Kong’s technology index fell amid speculation about tougher regulations from China, while an iron ore rally reinforced Australia’s dependence.

Snippets Morning call in the US show markets continue to price an interest rate hike at the Fed meeting in June (2022), with good chances of a second hike in September and a third in December to combat price pressures. Powell said the Fed would use its tools to support the economy and the labor market and prevent higher inflation from taking hold.

President Joe Biden opted for continuity at the Fed, selecting Powell for a second term as president and elevating Lael Brainard to vice president. They will face the task of containing the cost of living while fueling economic recovery. Inflation and rising employment were mentioned repeatedly in Biden’s instructions on his reappointment.

Among commodities, gold operates stable and oil retreats on the imminence of the expected US announcement of a coordinated release of reserves.

Major indices:

🇺🇸 S&P Futures -0,04%
🇩🇪 DAX -0,91%
🇺🇸 Nasdaq 100 -0,30%
🇬🇧 FTSE -0,03%
🇫🇷 CAC -0,42%
🛢 Oil Brent -0,84%
🛢 Oil WTI -1,21%
💵 Dólar Index -0,09%
🇺🇸 S&P VIX +0,13%
🇺🇸 US Tech -0,30%
💰 Bitcoin -1,72%
💲 Ethereum -1,06%

*Analysis by XP Investimentos

Follow the Beyond the Law.News Snippets Markets Call.

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