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Below are Views On Daily Global Market Update 18 November 2021 By Asheesh Chanda, Kristal.AI

Risk Off

Price action was consistent with a dip in sentiment overnight, though there was no obvious trigger on the data front. SPX was down quarter of a percentage point, but almost 70% of the constituents closed in the red. Treasuries rallied despite a weaker than expected 20Y auction, and the 10Y yield fell below 1.6% once again as the curve flattened. WTI fell below the 80 mark and was down close to 3% on the day, despite US weekly inventories showing a dip in reserves. The spread with Brent did widen to above USD 2 per barrel once again though. Speculation of US-China coordinated action on releasing strategic reserves seems a little farfetched for now.

UK's Oct inflation print followed the US in printing a decade high of 4.2% YoY on headline CPI. Yields fell across the curve and GBP rallied. In keeping with the risk off mood, JPY and CHF gained on the day. One of the biggest movers this week has been the Turkish Lira (TRY) - $TRY broke above the 10 lvl for the first time less than a week ago and is already close the 11 mark ahead of the rate decision today. Market expectations are for a 1% cut to 15% as Erdogan continues to pressure the central bank to ease. The domestic stock market (in TRY terms) has been on a tear recently, up over 20% since the start of Oct.

Gold rose again from the 1850 support level but like most other securities, it seems content within its recent range for now. Commodities were lower overall, as Energy and base metals headed lower. Crypto was mostly flat with the US federal agency report on systemic risk awaited and ARK's Cathie Wood making a prediction that Bitcoin hits USD 500k by 2026. Along with Turkey's rate decision today, we also have weekly unemployment data from the US, where no surprises are expected.”

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