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Stellantis share price rare pattern points to a 30% dive

The Stellantis share price has been in a strong freefall in the past few months. It has dropped for eight consecutive months and is hovering at its lowest level since January 2023. It is down by over 52% from its highest level this year, making it one of the worst-performing automakers this year.

Stellantis business is struggling

Stellantis is one of the leading players in the auto manufacturing industry. It was established in 2021 following the merger of Fiat Chrysler and Groupe PSA, a move that created one of the top vehicle manufacturers.

Stellantis owns some of the best-known brands in the sector, including RAM, Jeep, Dodge, Peugeot, Citroen, and Opel. It makes most of its money from Europe followed by the United States, where it mostly sells RAM.

Stellantis business is going through a major crisis as competition rises and as its years of underinvestment in its key brands. A good example of this is Chrysler, a brand that was one of the best-sellers in the US. Today, Chrysler sells four vehicle brands: Pacifica, Pacifica Hybrid, Voyager, and Chrysler 300, which have a limited market share.

The same trend has happened in its other brands. For example, Maserati, once a luxury brand powerhouse, has lost market share to Ferrari, Aston Martin, and Porsche. Alfa Romeo has struggled to compete with brands like Audi and BMW.

Fiat’s attempts to make inroads in the United States is not working, and analysts believe that it will ultimately exit. It sells the FIAT 500x, 500e, and 500e Armani, which are tiny vehicles in a country where most buyers are focused on large SUVs. 

RAM, its biggest brand in the US is facing major competition from the likes of Ford F-150, Toyota Tundra, and Silverado.

Stellantis, like other automakers, has also struggled in its electrification journey amid weak consumer demand and strong competition. It plans to offer about 40 battery electric vehicle models this year. The challenge is that EV demand has fallen, while innovation from Chinese brands has waned.

Meanwhile, its business could struggle in the next few years if Donald Trump decides to implement tariffs on goods from Mexico and Canada. This would be a big blow for Stellantis because it has big plants in Mexico, which it uses to make vehicles for the US market. 

Earnings growth has slowed

The most recent financial results showed that Stellantis’ business remained under pressure in the third quarter. Its net revenues came in at €33 billion, down by 27% from the same period last year. It blamed the weak sales to lower shipments and pricing issues. 

Stellantis shipped 1.14 million during the quarter, down by about 20% from the third quarter of 2023. According to the management, its shipments in the United States dropped to 299,000, while in Europe they fell to 496,000. 

On the positive side, as I wrote on General Motors, there are signs that the tariff issue will be resolved. I believe that Donald Trump is using these tariffs as a bargaining tool. Also, the company has become highly undervalued as it has a price-to-earnings ratio of 2.64. 

Stellantis has also become a high-dividend company yielding about 9.7%. Just this year, it has repurchased stock worth over €7 billion, a trend that will continue. The company is also cutting costs. Just this week, it said that it would close a Vauxhall plant in the UK. Still, I believe that Stellantis is a significantly risky company to invest in for now.

Stellantis share price analysis

The weekly chart shows that the Stellantis stock price has been in a strong bearish trend in the past few weeks. It has dropped from €25.8 earlier this year to about €12. Along the way, the stock has moved to the 61.8% Fibonacci Retracement level. It has also dropped below the 50-week and 200-week moving averages.

Most importantly, the stock has formed a bearish flag pattern, one of the riskiest signs in the market. A long flag pole and a rectangle-like pattern characterize it. Therefore, the stock will likely continue falling as sellers target the 78.6% retracement level at €8.45, which is about 30% below the current level.

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Ocado share price outlook: buy the dip or sell the rip?

Ocado share price continued in a strong downward trend, and is hovering near its all-time low as concerns about its business remained. It was trading at 325p on Wednesday, bringing the year-to-date losses to over 56%. 

Symbotic (SYM), one of Ocado’s biggest competitors, which is backed by Walmart, has also plunged hard this year. It dropped by more than 38% on Wednesday after it identified an error in its financials. 

Ocado Group challenges have remained

Ocado Group is a leading British company in the e-commerce and warehousing industry. It has two main businesses: retail and technology solutions. Its retail business operates as a joint venture with Marks and Spencer. In this division, the company handles orders through its website and mobile applications.

Ocado Group’s technology business is involved in the automation of warehouses for other retail companies. Over the years, it has inked deals with several large retailers like Kroger, Coles, Casino Group, Sobeys, and Alcampo.

These retailers benefit from Ocado’s expertise in the warehouse industry. The alternative would be to hire workers, spend on research and development, (R&D), and build their automation solutions from the ground up. 

Ocado benefits from their scale and consistent revenue over time. In some cases, Ocado also signs exclusive deals, where it is the only supplier of these solutions. 

However, the industry has many challenges. The most notable one is competition, which comes from the likes of Symbotic, AutoStore, Fabric, and Takeoff Technologies. 

The other challenge is that many retailers have already selected their technology provider after the e-commerce boom of the pandemic era. This challenge is evidenced by the fact that Ocado has not signed a major retail deal this year.

Ocado Retail is doing well

On the positive side, there are signs that the Ocado Retail business is doing well even as the country’s retail sales retreated. 

Ocado Retail revenue rose by 15.5% in the third quarter to £658 million, helped by an increase in the number of customers. Its average customers in the quarter rose to over 1.06 million, up from 961,000 in the same period last year. 

Ocado also boosted its forward revenue guidance for the full year. It expects that its revenue will grow by low double-digit, while its EBITDA margin will be about 2.5%.

The other parts of Ocado’s business continued to do well too. Its logistics revenue rose by 6% to £354 million, while technology solutions jumped by 22% to £241 million. Also, Ocado Group slashed its losses in the first half of the year as its EBIT moved to minus £154 million.

Ocado’s key challenge is that it has failed to achieve profitability over years. Data shows that its cumulative net loss since 2016 was over £1.6 billion. It had a net loss of £216 million last year and this trend may continue this year as it continues investing in its tech business.

Ocado share price analysis

OCDO chart by TradingView

The daily chart shows that the OCDO stock price has been in a strong downward trend in the past few months. It has remained below the descending trendline that connects the highest swings since February.

The stock has also moved below the 50-day and 25-day Exponential Moving Averages (EMA). It is also trading at 325p, a few points above the key support at 317p, the lowest swing in September.

Ocado shares have also formed a symmetrical triangle pattern and are slightly above the lower side. Therefore, the path of the least resistance for the stock is bearish, with the next point to watch being at 278p, its lowest level in June this year. 

On the positive side, there is a likelihood that Ocado will rebound in 2025 if it demonstrates that it was on a path towards profitability. 

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SoftBank invests $1.5B in OpenAI, enabling employee share monetization at $210 per share

SoftBank, the Japanese investment giant, has committed $1.5 billion to OpenAI, positioning itself as a major stakeholder in the leading artificial intelligence (AI) enterprise.

The deal allows OpenAI employees to monetize their shareholdings at $210 per share, a valuation linked to the company’s most recent funding round.

This opportunity is open to employees who have held shares for a minimum of two years, with transactions finalized by December 24, 2024.

SoftBank’s strategic investment underscores its ambitions to dominate emerging technology sectors, particularly AI, as part of its broader vision for future innovation.

SoftBank strengthens its stake in AI through OpenAI funding

SoftBank’s $1.5 billion investment into OpenAI is expected to grant the firm significant influence within the company.

This move aligns with SoftBank CEO Masayoshi Son’s long-standing vision of increasing the organization’s foothold in the AI space.

The funding provides current and former OpenAI employees with a lucrative opportunity to liquidate shares, potentially driving morale and fostering innovation within the firm.

The deal reflects OpenAI’s evolving strategy from its origins as a non-profit entity to its current status as a for-profit enterprise.

This transition has allowed it to attract high-value investments and scale its AI research and applications globally.

Employees benefit from OpenAI share sale

Eligible OpenAI employees can sell their shares at $210 each, representing a significant payout for those who meet the criteria.

Participation in this scheme requires employees to have held shares for at least two years, ensuring long-term contributors are rewarded.

Both current and former employees can take part, enabling a broad pool of stakeholders to benefit from SoftBank’s investment.

The valuation highlights OpenAI’s growth and its appeal to investors.

By offering employees a chance to monetize their holdings, the firm creates goodwill among its workforce while boosting liquidity for further development.

Vision Fund 2 drives SoftBank’s AI ambitions

SoftBank’s Vision Fund 2 (SVF2), launched in 2019, is the primary channel for its OpenAI investment.

With commitments of up to $56 billion, the fund has become a critical driver of SoftBank’s strategy to identify and back high-potential tech ventures.

The fund has previously invested in major players like Nvidia, Uber, and Exscientia, cementing its reputation as a leader in technology-focused venture capital.

The OpenAI deal aligns with SVF2’s focus on AI, targeting companies valued at over $1 billion or those positioned as market leaders.

This strategy reinforces SoftBank’s goal of fostering cutting-edge technologies that shape the future of industries globally.

AI funding reflects broader trends in tech investment

SoftBank’s significant commitment to OpenAI signals its confidence in AI’s transformative potential.

The move comes amidst heightened competition in the AI sector, with tech giants and investors alike vying for dominance.

By leveraging Vision Fund 2 to invest in market leaders like OpenAI, SoftBank is not only securing its position but also contributing to the broader adoption of AI technologies.

This strategic investment reflects the growing trend of institutional investors prioritizing AI as a cornerstone of future innovation.

It also demonstrates SoftBank’s readiness to take calculated risks in high-growth sectors, reinforcing its image as a forward-thinking investment powerhouse.

What does this mean for OpenAI?

The $1.5 billion funding will likely propel OpenAI into its next phase of growth, enabling it to expand its AI capabilities and global reach.

The investment aligns with the company’s trajectory as a for-profit entity, ensuring it has the resources to maintain its competitive edge.

For SoftBank, this partnership strengthens its portfolio in the AI domain and aligns with its long-term vision of leading in emerging technologies.

The funding underscores OpenAI’s position as a key player in AI innovation and its capacity to attract substantial capital from prominent investors.

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US crude inventories drop more than expected, but product stocks rise as oil market shifts focus to OPEC meeting

Crude oil inventories in the US fell more than expected in the week ended November 22 as imports plunged, the US Energy Information Administration (EIA) said. 

Last week, inventories in the US fell by 1.8 million barrels to 428.4 million barrels, the EIA said. 

Analysts had expected oil stockpiles to fall by 1.3 million barrels last week. 

Inventories were about 5% below the five-year average for this time of the year, EIA said in its weekly report. 

Refineries in the US operated at 90.5% of their operable capacity last week, compared with 90.2% in the preceding week, the agency said. 

Though the fall in inventories was bullish for oil prices, a significant rise in product stocks offset the positive sentiments in the market. 

Product stocks rise

EIA said gasoline inventories in the US jumped by 3.3 million barrels to 212.2 million barrels for the week ended November 22. 

Gasoline stocks were about 3% below the five-year average last week, the agency said. 

Source: EIA

Meanwhile, distillate stockpiles also rose by 400,000 barrels to 114.7 million barrels last week, the data showed. Stocks were about 5% below the five-year average. 

Stocks of fuel ethanol increased 300,000 barrels to 22.9 million barrels, while those of residual fuel fell 600,000 barrels to 23.2 million barrels. 

Meanwhile, stocks of propane and propylene declined 1 million barrels to 96.7 million barrels last week.

Production rises

Production of oil in the world’s largest producer increased last week by 292,000 barrels per day to 13.493 million barrels per day.

Oil production remained near record levels in the US last week. 

Production in Alaska rose just 3,000 barrels per day to 444 million barrels per day. 

Oil output increased by 289,000 barrels per day in the Lower 48 US states to 13.049 million barrels per day, the EIA said. 

EIA had earlier projected that average annual production is expected to be at record levels this year at 13.23 million barrels per day.

This was about 300,000 barrels per day higher than 2023’s average level. 

For 2025, oil production was pegged even higher at 13.53 million barrels per day, according to the EIA’s Short Term Energy Outlook report.

Reports have claimed that US President-elect Donald Trump is likely to approve a plan in his first few days back at the White House to increase drilling for oil and gas on federally-owned lands and off the coasts of the country.

Analysts at Commerzbank AG have said Trump’s policies are likely to increase crude oil production in the US in the medium to longer term. 

Imports plunge, exports increase

Crude oil imports by the US slipped by as much as 1.6 million barrels per day to 6.083 million barrels per day last week. 

The four-week average for imports last week was up 5.5% on a year-on-year basis to 6.629 million barrels per day. 

Exports rose by 285,000 barrels per day to 4.663 million barrels per day last week, EIA said. 

The four-week average for exports was down 19.1% on a year-on-year basis to 3.833 million barrels per day. 

Source: EIA

Imports from Mexico plunged by 617,000 barrels per day last week to just 151,000 barrels per day. Trump recently said that he intends to impose a 25% tariff on Mexican and Canadian imports to the US, which is likely to include oil as well. 

Oil prices steady

Oil prices were steady on Thursday as investors assessed a relatively mixed US crude inventory report. 

Even as crude oil inventories fell, a sharp increase in product stocks weighed on sentiments. Prices had even fallen earlier in the session due to a sharp rise in gasoline stockpiles last week. 

However, much of the attention will now shift to the ministerial meeting of the Organization of the Petroleum Exporting Countries and allies on Sunday. 

The market expects the cartel to extend its steep voluntary production cuts beyond the end of this year to balance the supply and demand dynamics. 

There are concerns that if OPEC increases production from January, the oil market will be significantly oversupplied. 

At the time of writing, the price of West Texas Intermediate crude oil was at $68.77 per barrel, largely unchanged from the previous close. 

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Here’s why the Aston Martin share price could soar to 300%

Aston Martin Lagonda share price has remained in a freefall this year as the company’s challenges continued. It slipped to a low of 98.10p on Wednesday, its lowest level this year and 52% below its highest point this year. AML has dropped by over 97% from its all-time high.

Aston Martin share price falls after cash raise

The AML stock price has been in a strong downtrend after the company raised £111 million by issuing new shares. It also raised another £100 million in debt to boost its balance sheet as challenges remained. 

Raising cash in the equity market is seen as a bad thing because it usually dilutes existing shareholders who own less of the company. Also, the debt aspect was also notable because Aston has been fighting to reduce its substantial debt load in the past few years. 

Aston Martin has raised cash several times in the past. Most of these funds came from Saudi Arabia’s PIC, which is now a major shareholder in the company. Other funds have come from Yew Tree, a consortium led by Lawrence Stroll and Geely Holding.

The new fundraising gives Aston Martin with about £500 million in liquidity, which will be enough to push it in the near term. 

Aston Martin is also struggling in the manufacturing process, which has seen some of its vehicles delayed. The most recent product delay is that of some Valiant models, which will push its EBITDA to between £270 million and £280 million. 

Just in September, Aston Martin slashed its guidance, citing the ongoing supply chain issues in China. 

AML sales trajectory is worrying

The most recent results showed that Aston Martin’s wholesale volumes dropped by 17% in the first nine months to 3,639. Its revenue fell by 4%, while its gross profits rose by 2% to £376.9 million. 

The last quarter was fairly good for the company as its sales volume rose by 14% to £1.6 billion, while its revenue jumped to £391 million. The company also narrowed its quarterly loss by 55% to £21.7 million. 

Aston Martin, under Adrian Hallmark, the new CEO, is working to release more models to grow its sales. It has recently launched Vanquish, a vehicle that has been received well. Its other models like Vantage, DB12, Valhalla, and Valour have also been doing well this year.

The challenge, however, is that the company’s balance sheet is not strong enough, which may see it raise cash again.

Aston Martin’s performance pales in comparison from that of Ferrari, a luxury autmomaker that has become a $80 billion juggernaut. Ferrari’s stock has jumped by 18% this year as the company continued releasing new models. 

Aston Martin Lagonda share price analysis

AML stock chart by TradingView

The weekly chart shows that the AML stock price has been in a strong downward trend in the past few months. Past attempts to predict a rebound have largely proven wrong as it has continued falling.

The stock has remained below the 50-week moving average, while the MACD indicator has moved below the zero line. Also, the Relative Strength Index (RSI) has continued falling and is hovering slightly above the overbought level.

The Aston Martin share price has moved below the 23.6% Fiboncci Retracement level. Most importantly, it has formed a double-bottom pattern, which is a bullish view. 

Therefore, the contrarian case is where the stock rebounds to the important resistance level at 397.2, its highest level in July 2023, which is about 300% above the current level. 

The post Here’s why the Aston Martin share price could soar to 300% appeared first on Invezz

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Here’s why the Aston Martin share price could soar to 300%

Aston Martin Lagonda share price has remained in a freefall this year as the company’s challenges continued. It slipped to a low of 98.10p on Wednesday, its lowest level this year and 52% below its highest point this year. AML has dropped by over 97% from its all-time high.

Aston Martin share price falls after cash raise

The AML stock price has been in a strong downtrend after the company raised £111 million by issuing new shares. It also raised another £100 million in debt to boost its balance sheet as challenges remained. 

Raising cash in the equity market is seen as a bad thing because it usually dilutes existing shareholders who own less of the company. Also, the debt aspect was also notable because Aston has been fighting to reduce its substantial debt load in the past few years. 

Aston Martin has raised cash several times in the past. Most of these funds came from Saudi Arabia’s PIC, which is now a major shareholder in the company. Other funds have come from Yew Tree, a consortium led by Lawrence Stroll and Geely Holding.

The new fundraising gives Aston Martin with about £500 million in liquidity, which will be enough to push it in the near term. 

Aston Martin is also struggling in the manufacturing process, which has seen some of its vehicles delayed. The most recent product delay is that of some Valiant models, which will push its EBITDA to between £270 million and £280 million. 

Just in September, Aston Martin slashed its guidance, citing the ongoing supply chain issues in China. 

AML sales trajectory is worrying

The most recent results showed that Aston Martin’s wholesale volumes dropped by 17% in the first nine months to 3,639. Its revenue fell by 4%, while its gross profits rose by 2% to £376.9 million. 

The last quarter was fairly good for the company as its sales volume rose by 14% to £1.6 billion, while its revenue jumped to £391 million. The company also narrowed its quarterly loss by 55% to £21.7 million. 

Aston Martin, under Adrian Hallmark, the new CEO, is working to release more models to grow its sales. It has recently launched Vanquish, a vehicle that has been received well. Its other models like Vantage, DB12, Valhalla, and Valour have also been doing well this year.

The challenge, however, is that the company’s balance sheet is not strong enough, which may see it raise cash again.

Aston Martin’s performance pales in comparison from that of Ferrari, a luxury autmomaker that has become a $80 billion juggernaut. Ferrari’s stock has jumped by 18% this year as the company continued releasing new models. 

Aston Martin Lagonda share price analysis

AML stock chart by TradingView

The weekly chart shows that the AML stock price has been in a strong downward trend in the past few months. Past attempts to predict a rebound have largely proven wrong as it has continued falling.

The stock has remained below the 50-week moving average, while the MACD indicator has moved below the zero line. Also, the Relative Strength Index (RSI) has continued falling and is hovering slightly above the overbought level.

The Aston Martin share price has moved below the 23.6% Fiboncci Retracement level. Most importantly, it has formed a double-bottom pattern, which is a bullish view. 

Therefore, the contrarian case is where the stock rebounds to the important resistance level at 397.2, its highest level in July 2023, which is about 300% above the current level. 

The post Here’s why the Aston Martin share price could soar to 300% appeared first on Invezz

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Top 2 retail stocks to buy ahead of Black Friday

A recent Goldman Sachs survey suggests consumers will likely spend more on holiday shopping this year compared to 2023.

But not all retailers are built the same.

Historically, certain retailers experience a more significant boost during the holiday season.

With that in mind, two retail stocks stand out as particularly attractive investments ahead of Black Friday.

Both have consistently outperformed their peers in December over the past ten years.

Bath & Body Works Inc (NYSE: BBWI)

Bath & Body Works (BBWI) stock has shown impressive strength this month, and its historical performance suggests further gains are possible in December.

Since 2021, the retail stock has consistently rallied over 8% in the final month of each year.

Adding to its appeal, BBWI recently exceeded Wall Street estimates for its third financial quarter.

On November 25th, Bath & Body Works expressed confidence in its ability to navigate a volatile retail environment and capitalize on the holiday shopping season, raising its full-year guidance.

CEO Gina Boswell attributed this positive outlook to “strong execution and the momentum we’re building,” reiterating the company’s commitment to sustainable, long-term profitable growth in the earnings press release.

A distinguishing factor for BBWI is its predominantly US-based supply chain.

This domestic focus, combined with the company’s growth strategy, could propel its stock to $42 by the end of next year, according to analysts at TD Cowen.

This price target represents a potential 20% upside from current levels.

Furthermore, BBWI offers investors a healthy 2.26% dividend yield, making it an attractive option for passive income seekers.

Abercrombie & Fitch Co (NYSE: ANF)

Abercrombie & Fitch Co. (ANF), despite a recent decline of more than 10% over the past month, also exhibits a historical trend of December gains, typically up to 3%.

The clothing retailer’s positive financial performance further strengthens its potential for recovery.

On Tuesday, Abercrombie & Fitch significantly surpassed Wall Street expectations for its fiscal third quarter.

Citing anticipated holiday shopping activity, the company raised its guidance for the current quarter, projecting sales growth of up to 7% during the holiday period, exceeding the 4.8% increase forecast by analysts.

“Our teams are engaged and ready to deliver for our customers this holiday season with the goal of achieving sustainable profitable growth firmly in our sights,” CEO Fran Horowitz stated in a press release.

Analysts currently see an average upside of over 25% for Abercrombie & Fitch stock.

However, unlike Bath & Body Works, ANF, whose shares recently broke above their 50-day moving average, does not currently offer a dividend.

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Asian markets uneasy amidst Trump’s tariff threats; yen strengthens

Asian stock markets faced downward pressure on Wednesday as investors grappled with the implications of incoming US President Donald Trump’s renewed tariff threats against Canada, Mexico, and China.

This unease follows Trump’s pledge on Tuesday to impose new levies on these key trading partners.

The Canadian and Mexican currencies, the loonie and peso, remained weak following sharp declines to multi-year lows on Tuesday.

The Chinese yuan also edged closer to its four-month low from the previous session.

Similarly, the Australian dollar, often seen as a proxy for the yuan due to China’s significant trade relationship with Australia, neared its own four-month low.

However, the New Zealand dollar rebounded after the country’s central bank announced a smaller-than-expected interest rate cut of 50 basis points, defying some market predictions of a larger reduction.

Safe-haven yen rises as US dollar weakens

Amidst the market uncertainty, the safe-haven Japanese yen continued its ascent, reaching a two-week high against the US dollar.

The US dollar’s decline was further exacerbated by weakening Treasury yields.

Japanese stocks underperform, autos sector hit hard

Japan’s Nikkei index lagged significantly, falling 0.9%.

The automotive sector was particularly hard hit, declining over 3% on the Tokyo Stock Exchange.

This drop reflects the dual pressures of potential tariffs and the strengthening yen, both of which threaten to squeeze profit margins.

Mixed Performance Across Asian Markets

Taiwanese stocks dipped 0.2%, while South Korea’s KOSPI edged up less than 0.1%, struggling to recover from Tuesday’s 0.6% decline. Mainland Chinese blue-chip stocks fell 0.4%, but Hong Kong’s Hang Seng index managed a slight 0.1% gain.

Overall, MSCI’s broadest index of Asia-Pacific shares slipped 0.1%.

Asian markets diverge from Wall Street gains

The weakness in Asian markets contrasted with the overnight gains on Wall Street, where all three major indices closed higher.

S&P 500 futures indicated a potential 0.1% further advance.

This divergence underscores the specific concerns surrounding Trump’s trade policies within the Asian markets.

Trump’s tariff threats rattle investors

Early Tuesday in Asian trading hours, Trump announced on Truth Social his intention to immediately impose a 25% tariff on all goods from Mexico and Canada upon taking office, along with an additional 10% tariff on products from China.

He stated these tariffs would remain in effect until these countries addressed issues such as drug trafficking and migration across US borders.

“The theme on the day has been to buy America, and for some to begrudgingly open a Truth Social account, with confirmation that headline risk and the communication channels for price discovery in markets have officially evolved,” commented Chris Weston, head of research at Pepperstone.

He further noted the change in Trump’s approach compared to his first term: “he is far more prepared, has a clear game plan, and has the legal passage to execute without constraint,” leading markets to “expect bold action ongoing, with the noise in markets officially increasing even before inauguration.”

Currency markets and treasury yields respond

The offshore yuan weakened 0.1% against the dollar, approaching Tuesday’s low.

The Mexican peso also declined, nearing its overnight trough.

The Canadian dollar edged lower but remained above its previous session’s low.

Against other major currencies, the US dollar saw mixed performance, strengthening slightly against the euro but weakening against the yen, hitting its lowest point since November 10th.

US short-term Treasury yields also continued to decline, extending their pullback from Friday’s nearly four-month high.

Investors assess tactical and fundamental implications

Trading volumes were generally lighter this week due to the US Thanksgiving holiday, with many investors extending their break.

Market participants are also anticipating the release of the Federal Reserve’s preferred inflation gauge, the PCE deflator, later on Wednesday.

Shinji Ogawa, head of Japan cash equities sales at JPMorgan, observed that as the initial market reaction to Trump’s tariff threat subsided, “investors seem to view this as more tactical rather than fundamental, but enough to trigger risk off ahead of the long weekend.”

This suggests a degree of caution but not outright panic among investors.

Commodities markets react to geopolitical and supply dynamics

The New Zealand and Australian dollars saw mixed performance, with the Kiwi gaining ground while the Aussie slightly declined.

Bitcoin, the leading cryptocurrency, attempted to recover after a four-day decline from its record high, while gold prices ticked up slightly.

Oil prices, on the other hand, continued to fall as markets weighed the potential impact of a ceasefire between Israel and Hezbollah, in anticipation of Sunday’s OPEC+ meeting.

Both Brent and WTI crude futures declined, reflecting the easing of geopolitical tensions in the Middle East.

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