In Line with Market Expectations, the FOMC Cuts Interest Rates by 25 Basis Points; Risk Assets Surge, with Copper Prices Making a Strong Rebound

US Stock Market Update - November 7:

At the close of trading, the S&P 500 rose by 0.74% to a record high of 5,973.10 points. The Nasdaq Composite gained 1.51%, reaching 19,269.46 points, while the Dow Jones remained nearly flat at 43,729.34 points.

After a two-day meeting, the Federal Open Market Committee (FOMC) lowered its target rate range by 25 basis points to 4.5% - 4.75%. However, Fed Chair Jerome Powell left the door open for another rate cut in December.

Following Trump's election victory, there were concerns that he might request Powell's resignation. However, the Fed Chair firmly stated that he would not resign if asked by the President, emphasizing that such an action is not legally permitted.

US Treasury Bonds:

The yield on the 10-year US Treasury bond adjusted downward to 4.339%.

Dollar Index:

The DXY index, which measures the strength of the USD, decreased by 0.76%, dropping to 104.33.

Gold Market:

• Spot gold rose 1.2% to $2,691.36 per ounce after hitting a three-week low on November 6.

• Gold futures also increased by 1.1% to $2,705.80 per ounce.

  
  

Commodities Market:

Crude Oil: By the close of trading on November 7, Brent crude futures rose 0.95% to $75.63 per barrel, while WTI crude gained 0.93% to $72.36 per barrel.

Metals: December silver futures increased nearly 2% to $31.885 per troy ounce. January 2025 platinum futures edged up to $999.1 per troy ounce. Copper rebounded strongly by 4%, climbing to $4.4315 per pound after a significant sell-off following Trump's election, which had initially caused a 4% drop in prices. Investors are now looking forward to a large stimulus package from China, expected to be approved by the National People's Congress (NPC) today.

In Line with Market Expectations, the FOMC Cuts Interest Rates by 25 Basis Points; Risk Assets Surge, with Copper Prices Making a Strong Rebound

US Stock Market Update - November 7:

At the close of trading, the S&P 500 rose by 0.74% to a record high of 5,973.10 points. The Nasdaq Composite gained 1.51%, reaching 19,269.46 points, while the Dow Jones remained nearly flat at 43,729.34 points.

After a two-day meeting, the Federal Open Market Committee (FOMC) lowered its target rate range by 25 basis points to 4.5% - 4.75%. However, Fed Chair Jerome Powell left the door open for another rate cut in December.

Following Trump's election victory, there were concerns that he might request Powell's resignation. However, the Fed Chair firmly stated that he would not resign if asked by the President, emphasizing that such an action is not legally permitted.

US Treasury Bonds:

The yield on the 10-year US Treasury bond adjusted downward to 4.339%.

Dollar Index:

The DXY index, which measures the strength of the USD, decreased by 0.76%, dropping to 104.33.

Gold Market:

• Spot gold rose 1.2% to $2,691.36 per ounce after hitting a three-week low on November 6.

• Gold futures also increased by 1.1% to $2,705.80 per ounce.

Commodities Market:

• Crude Oil: By the close of trading on November 7, Brent crude futures rose 0.95% to $75.63 per barrel, while WTI crude gained 0.93% to $72.36 per barrel.

• Metals:

  • December silver futures increased nearly 2% to $31.885 per troy ounce.

  • January 2025 platinum futures edged up to $999.1 per troy ounce.

  • Copper rebounded strongly by 4%, climbing to $4.4315 per pound after a significant sell-off following Trump's election, which had initially caused a 4% drop in prices. Investors are now looking forward to a large stimulus package from China, expected to be approved by the National People's Congress (NPC) today.

Technical Analysis:

• Copper prices show signs of forming higher lows around the $4.25 level, indicated by an upward trendline connecting recent lows. However, selling pressure remains, preventing a clear breakout from the current downward channel.

  
  

• The 9-period SMA currently lies below the price, suggesting a short-term bullish trend if prices hold above this moving average.

  
  

• If prices can break above the $4.48 level (corresponding to the 0.382 Fibonacci level), the next targets would be $4.54 (Fibonacci 0.5) and further up to $4.6 (Fibonacci 0.618). Conversely, if prices fail to hold the $4.4 support, they may revisit the trendline support around $4.25. A break below this level could lead to deeper declines towards $4.10 or even $4.00.

  
  

Source: Compiled Data