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Below are Views On Daily Global Market Update 10 November 2021 By Asheesh Chanda, Kristal.AI

Rangebound

With no major events on the agenda this week, we're seeing price action mostly sideways so far. SPX broke its recent streak of daily gains to dip to the 4680 level. The decline here was more top heavy with just over half the index constituents closing in the green. The US dollar was weaker again with US yields lower. The curve also flattened significantly ahead of the weekly jobless numbers tonight with the 30Y yield now a little above the 1.8% level. If the trend lower in the jobless numbers holds, we could see a dip below 2 mn in continuing claims.

Markets also digested the news that Biden met with Lael Brainard, who is seen as a possible successor to Powell as Fed Chair when his term is up in Feb next year. While Powell was mostly considered a lock for another term earlier in the year, the trading scandal and Senate grilling on regulation in recent months have not gone well for him. No specific timeline on a decision here and while Brainard's stance on monetary policy is still broadly consistent, she is perceived to be tougher on Wall Street which could potentially hurt Financials.

Ahead today, we have more data for the runaway inflation narrative from China and the US. China's PPI is expected to hit a 25 year high at 12.3% YoY following record price rises and energy disruptions. In the US, the headline CPI YoY gain of 5.9% expected would be the highest reading since 1982. The US 5Y breakeven is also just 1 bp shy of the 3% mark once again. Most forecasts still expect the price pressures to ease starting Feb next year when supply chain bottlenecks are cleared. Weekly US Crude inventories are also out tonight.”

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