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Below are Views On Daily Global Market Update 24 November 2021 By Asheesh Chanda, Kristal.AI

Crude higher despite SPR release

SPX gains on the day were given by the Energy sector, which gained 3% closely following Crude and Natural Gas. The lurch higher came after the US announced it was releasing 50 mn barrels from its Strategic Petroleum Reserve (SPR) - the largest such move since the Libyan conflict in 2011. The move was coordinated with oil importing nations like China, India, Japan and South Korea. Futures rose on the announcement likely because expectations for a larger release were priced in and possibly in a shorter timeframe. This also opens for door for OPEC+ to potentially scale back their planned gradual supply increases in the coming months.

US yields were higher on the day as the yield curve got steeper. The US dollar was mostly flat and crypto saw gains, with Ethereum outpacing Bitcoin. Commodities were up despite the precious metals lower on the day as Gold fell below the 1800 level again. This reversal comes after threatening to break above 1900 over the last couple of weeks. The Turkish Lira (TRY) sold off once again, bringing back memories of the 2018 run higher for $TRY. The currency has weakened close to 30% in the last two weeks as the President has forced to central bank to cut rates despite high inflation.

And speaking of high inflation, NZ today and South Korea tomo are expected to each hike by 25 bps as price gains accelerate. The hawkish shift seems to have made considerable headway across all the major banks as even ECB speakers are now nudging the market to price in rate hikes for 2022. Today's pre-Thanksgiving session is unlikely to see major moves but we do have a heavy data calendar in the US, where the Q3 GDP growth could be revised higher by 0.2%. We could also see continuing claims dip below 2mn for the first time since March 2020.”

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