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Below is the daily global market update 01 November 2021 By Team Kristal.AI

SPX closes at record high

SPX closed above the 4600 level on Friday overcoming the miss from Apple and Amazon earnings after the prior close. The headline rally was only 0.2% though with the largest weighted sectors of Tech and Healthcare leading the way. This brings the gain for Oct to almost 7% in a broadly positive month for risk sentiment. The US dollar traded up too as yields were mostly unchanged. We saw significant flattening in the US yield curve last week with the 2Y yield now just shy of 50 bps. We have the FOMC rate decision this week where the taper could potentially be kicked off immediately.

Agriculture was the only bright spot for commodities last week with Energy and Metals trading lower. No such issues on the Crypto side though - while Bitcoin did come off record highs to dip below 60k, it has managed to trade above that support level so far. Ethereum had a strong week too, gaining 10%, as it becomes the next likely candidate for institutional adoption after Bitcoin. China HY continued to see stress despite Evergrande managing to put off a default on Friday - the next key date would be Oct 11, where it has close to USD 150 mn due in coupons. China's developers as a whole have a refinancing bill of about USD 2 bn this month.

Japan's elections over the weekend went largely along expected lines. The LDP did lose out on 15 seats in the diet (though it retained its majority) and the new PM Kishida announced he would reassess on the administration's priorities going forward. In addition to the Fed's decision this week, we also have rate decisions from Australia and the UK, which have both turned out to be more hawkish than expected over the last few weeks. Global PMI numbers start coming out today and parts of Asia will be out in the second half of the week for Diwali.”

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