Nvidia, Crypto Rally & More: 18 Nov. Market Events & Recap

November has proven to be a significant month for the financial and economic realms, with key events like Donald Trump's re-election generating major headlines and driving rallies across various market sectors. 

This took place alongside ongoing economic data releases and other notable economic events. 

Let’s take a closer look at this week’s main events and recap last week’s highlights to gain a better understanding of the current market landscape:

Highlights from Last Week (Week of 10 November)

Crypto Rally Sends Bitcoin Over $90,000

The second week of November was eventful, and arguably among its main highlights was the cryptocurrency rally that led to Bitcoin (BTCUSD) reaching key cryptocurrency milestones, with its value soaring to a historic of over $90,000 for the first time (on 13 November). 

One of the main factors attributed to this record high is Trump’s stance on cryptocurrencies. He said he would turn the US into the “crypto capital of the world,” adopting a crypto-friendly approach many investors and traders may have been seeking. 

This is particularly significant in light of the fact that the cryptocurrency market has faced numerous regulatory scrutinies in the past couple of years, along with ongoing criticism and scepticism.

CPI Release and US Inflation

In economic news, the Consumer Price Index (CPI) data, a key measure of inflation and deflation used by the Federal Reserve and other central banks to guide monetary policy, was released on Wednesday, 13 November. 

Headline CPI rose to 2.6% year-on-year (up from 2.4% the previous month), while core inflation remained unchanged at 3.3%. 

Some categories, such as energy, petrol, and new cars, saw price declines, but housing, rent, and motor insurance costs continued to rise. 

All in all, although inflation has made considerable progress from its peak of 9.1% in June 2022, achieving the Fed’s 2% target remains a challenge. 

Some experts expect that if economic growth slows and the labour market eases, services inflation may moderate. 

Moreover, they project that over the longer term, as the economy recovers, inflation could stabilise in the 2%-3% range. If this materialised, that could be favourable for long-term investors, particularly if wage growth remains strong. 

Nonetheless, only time will tell what will actually happen. 

US, Europe & Asia-Pacific Indices

As optimism around the election results waned last week, US, European, and Asian-Pacific stock indices saw mixed performances. 

• US Markets: Most major Wall Street indices ended the week in the red, reflecting a loss of momentum in investor sentiment. 

• European Markets: European indices saw a partial rebound on Thursday, driven by strong earnings from tech companies, but still closed the week in negative territory.

• Asia-Pacific Markets: Stock markets in the Asia-Pacific region also posted losses, following the broader global downtrend. (Source: Euronews)

It will be interesting to see how this week might affect indices’ performance. 

The Week Ahead 

Now that we've reviewed last week's key events and gained a clearer understanding of the current market landscape, let's turn our attention to the week ahead.

Upcoming Economic Data Releases

Some of the week’s main economic reports include the following:

• Monday, 18 November: US NAHB Housing Market Index and Hong Kong Unemployment. 

• Tuesday, 19 November: US Housing Starts, US Building Permits, and Eurozone MoM CPI.

• Wednesday, 20 November: UK CPI.

• Thursday, 21 November: US Initial Jobless Claims and Existing Home Sales. 

• Friday, 22 November: Eurozone, US, and UK Purchasing Managers Index (PMI), UK Retail Sales, and US University of Michigan Consumer Sentiment.

Earnings From the World’s Most Valuable Companies 

Earnings season is set to continue this week with major releases from some of the biggest companies in the market. Here are the most anticipated reports:

• Lowe’s (LOW) and Walmart (WMT) on Tuesday, 19 November.

• Nvidia (NVDA), Target (TGT), TJX (TJX), and Palo Alto Networks (PANW) on Wednesday, 20 November.

• Baidu (Bidu) and Deere (DE) on Thursday, 21 November.

Traders may want to watch and see what the reports will reveal about the various market sectors.

Upcoming Fed Speeches 

Speeches from Federal Reserve members are set to take place this week, with remarks from Chicago Fed President Austan Goolsbee on Monday and Cleveland Fed President Beth Hammack on Thursday. 

These speeches could provide traders and consumers with much-needed insight into the Fed’s monetary policy rationale ahead of their last meeting of the year, scheduled for 12-13 December.

Conclusion 

To conclude, November has been a crucial month for markets, with major events like Trump’s pro-crypto stance driving a Bitcoin rally and inflation data showing progress but remaining above the Fed’s target. 

Stock markets saw mixed performances globally, reflecting cautious sentiment. 

Looking ahead, key economic reports, earnings releases, and speeches from Fed officials will provide further insights into the market’s direction as we approach year-end.