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Below are Views On Daily Global Market Update 03 November 2021 By Asheesh Chanda, Kristal.AI

Waiting for the Fed-

Major US equity indexes notched up yet another all time-high yesterday as markets wait for the FOMC today. The recent rally can be attributed to the fact that profit margins for the companies have held very well even in the face of soaring commodity prices and supply chain issues. However, for those looking at technicals a little closely, the relentless rally post mid October has now pushed SPX Index to technically overbought levels with 14-day RSI >70.

Yesterday, both SPX and Nasdaq were up a little more than 0.3% with the small cap index still hovering around the upper resistance of it's trend channel.

Rates curves globally saw short-term rates slide (and curves steepen) post the RBA decision and dovish commentary yesterday. Today we have the FOMC where Fed is expected to announce tapering starting in mid-November or mid-December.

The last FOMC minutes indicated the central bank probably would start by cutting $10 billion a month in Treasury's and $5 billion a month in mortgage-backed securities.

The Fed is currently buying at least $80 billion in Treasury's and $40 billion in MBS. The target date to end the purchases should there be no disruptions would be mid-2022.

In other news, Yahoo said it has pulled out of China, citing an increasingly challenging operating environment and Netflix began its expected foray into video games with the introduction of five mobile games, playable initially on Android devices.

We have few important and potentially market moving data calendar this week including FOMC today, OPEC+ meeting on output, BOE rate decision and US initial jobless claims tomorrow before the all important US NFP number on Friday.

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