Macro update
Asian markets steady after turbulent month:
Regional equities firmed at the end of November as renewed expectations of a US rate cut offered support, even though markets remain sharply lower on the month.
Fed cut expectations ramp up:
Federal Reserve (Fed) funds futures now assign an 85% probability to a December rate cut, buoyed by dovish comments from senior policymakers despite data gaps caused by the prolonged US government shutdown.
CME outage rattles futures trading:
A technical issue at CME Group disrupted currency, commodity and Treasury futures, injecting volatility into an otherwise quiet session with US markets operating on shortened Thanksgiving hours.
Treasuries extend their rally:
Government bonds looked set for a fourth straight month of gains as traders priced in imminent easing, while the US dollar headed for its weakest week since July.
BoJ hike speculation rises:
Stronger-than-expected Tokyo inflation kept alive expectations of a potential Bank of Japan (BoJ) rate increase as early as next month, with the Japanese yen stabilising after touching a 10-month low.
Commodities mixed:
Gold pushed above $4,180.00 an ounce, up 4.5% for the month, while oil gained on the day but remained on track for a fourth consecutive monthly decline.
Dow Jones rally likely to continue
The Dow Jones Industrial Average swiftly reversed its short-term downtrend last week and has been surging higher over the past four straight days, aiming for new record highs.
The next upside target is the late October high at 47,718 while minor support may be spotted around the 21 October high at 47,125.