We continue our series of weekly summaries of the top economic events. This week, we observed with interest the growth of global indices and the weakening of the dollar, alongside the heightened volatility of oil prices influenced by OPEC+'s stance. What implications will these developments have?
Discover more in the detailed analysis below in our review.
Stocks post the best month since 2022
In November 2023, stock markets experienced a significant rally, marking the best monthly gains of the year for major indexes like the S&P 500, Dow Jones Industrial Average, and Nasdaq. The S&P 500 closed the month up by 8.9%, while the Nasdaq saw an increase of 10.7%, the highest since July 2022. The rally was broad-based, with even previously lagging sectors like the Russell 2000 gaining about 8.8%. The Dow Jones also rose by a similar margin, its best since October 2022.
This surge is attributed to a shift in investor focus from when interest rates will peak to expectations of them falling.
Trading involves significant risk of loss.
Tesla's ($TSLA) new Cybertruck, starting at $60,990, has arrived
Tesla's Cybertruck, long delayed and highly anticipated, will now start at a price of $60,990, significantly higher than the initial price point announced by CEO Elon Musk in 2019.
The truck's design features a unique stainless steel body with flat planes, adding both complexity and cost to its production. This unconventional and futuristic design may potentially distance traditional pickup truck buyers who prioritize utility.
Following this announcement, Tesla's shares experienced a 2% decline in extended trading, after an initial drop of 1.6% at closing, priced at $240.08.
Trading involves significant risk of loss.
Oil price falls after Saudi-led cartel surprises market
The price of crude oil fell after the OPEC+ group, led by Saudi Arabia, did not commit to an expected production cut of one million barrels per day in their meeting statement. Before the meeting, Brent crude had risen 5.1% to over $84 a barrel. The OPEC+ meeting aimed to support declining oil prices and concluded with an agreement to cut output by early next year. Despite Saudi Arabia's ongoing supply reduction, the lack of a unified pledge for production cuts led to a 2.47% drop in Brent Oil prices.
This price change is significant as the OPEC+ group controls over 40% of the world's oil production, impacting global petrol prices.
Trading involves significant risk of loss.
US Dollar kicks off December on the wrong footing
At the start of December, the US Dollar is facing challenges, with risk sentiment remaining cautious.
As a result, the US Dollar Index is holding low at around 103.30, reflecting the consolidation of its weekly losses. In currency markets, the $EURUSD pair is trading near 1.0900, stabilizing from its recent lows in European trading. The pair's recovery is aided by a weakening US Dollar, but its gains are limited due to concerns about falling inflation and stagnant economic growth in the Eurozone.
Trading involves significant risk of loss.
This concludes our weekly recap. Have a great weekend and see you next week! 👋
