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Analytics, 20 November 2023

What will drive the markets this week?

On Friday, Wall Street’s three major indices saw marginal gains as investors absorbed recent market advances. However, the outlook on when the U.S. Federal Reserve might initiate interest rate cuts became uncertain following remarks from Fed officials

The S&P 500, Nasdaq, and Dow marked their third consecutive week of gains, with the S&P and Dow achieving their lengthiest weekly winning streak since July. Meanwhile, the Nasdaq experienced its most extended weekly advance since June.

In Europe, shares climbed on Friday, driven by gains in financials and healthcare. The week concluded with heightened optimism that central banks would aggressively reduce interest rates in the coming year. The pan-European STOXX 600 rose by 1.0%, finishing the week 2.8% higher, supported by falling bond yields.

Asian shares, excluding Japan, dipped by 0.45%, while Japan’s Nikkei closed up 0.48%, posting a solid 3% gain for the week. The Bank of Japan’s commitment to its super loose policy contributed to this positive performance. However, Chinese blue chips declined by 0.12%, lagging behind the overall weekly rally.

As the trading week will be shortened due to the Thanksgiving holiday, U.S. markets will be closed on Thursday and will also close early the next day (Black Friday). Major retailers like Amazon, Target, Walmart, Best Buy, Home Depot, and Costco are gearing up for Black Friday sales events, offering a wide array of deals and discounts.

Although the majority of earnings reports have concluded, investors can still anticipate financial updates from notable retailers, including Lowe’s, Best Buy, Dick’s Sporting Goods, Abercrombie & Fitch, Kohl’s, and Nordstrom. Notably, attention will be focused on the tech giant and AI trailblazer Nvidia, scheduled to report earnings on Tuesday.

Beyond corporate earnings, market observers should monitor updates on existing home sales and consumer sentiment. On Tuesday, the Federal Open Market Committee (FOMC) is expected to release the meeting minutes from its most recent policy meeting.

Events expected to move the markets this week

Monday, November 20

Tuesday, November 21

Wednesday, November 22

Thursday, November 23

Friday, November 24

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