Dollar Extends Decline, Moody's Lifts Italy - Europe Market Wrap

20 Nov 2023 12:25MSFT China EUR Europe US Bonds US Indexes USD

- A measure of the strength of the dollar declined further, with the greenback reaching its lowest point since August on expectations that the Federal Reserve is drawing closer to the conclusion of its rate-hike cycle.
- Following last week's cool inflation statistics, traders are pricing in about a 30% likelihood of a first Fed rate decrease in March. Investors are waiting for the minutes of the most recent Fed rates meeting to be released on Wednesday to gain further insight into the policy makers' minds.
- Treasury yields ticked higher ahead of a US 20-year auction.
- Microsoft gained more than 2% in pre-market trading after hiring Sam Altman, the OpenAI co-founder fired from his startup last week, to head its in-house artificial intelligence team; and US equity futures saw little change following a three-week stock rally that drove the S&P 500 to an 11-week peak.
- Numerous negative corporate news stories affected shares, causing the STOXX Europe 600 index to fluctuate.
- China drafts white list of 50 developers for financing boost.
- ECB's Wunsch: Bets on rate reductions risk are prompting hike instead.