The macro week is partly shaped by the OPEC+ meeting on Nov. 26 amid reports the cartel may consider more oil output cuts to shore up recently plunging crude prices.
The failure of OPEC+ to buoy oil prices this year shows how much falling global demand is starting to shape prices and how much booming U.S. production is dominating the picture.
After plummeting almost 25% in six weeks, U.S. crude prices have backed up a bit after the Reuters report on possible cuts on Friday and held steady about $76 per barrel first thing.
That’s also drawn a line for now under the recent slide in U.S. Treasury yields, which also bounced on Friday and were propped further by both Federal Reserve hawkishness and unexpected housing starts data from last month.
The S&P500 eked out another small gain on Friday, its fourth daily advance in a row and the highest close since Sept. 1. Futures were marginally higher ahead of Monday’s bell – but the VIX volatility gauge was also slightly higher than Friday’s two-month closing low.
The dollar was a big loser first thing Monday, also hitting its lowest since Sept. 1.
Softening U.S. debt yields have undermined the greenback but China’s yuan led the way to three-month highs as the central bank there left a key interest rate unchanged and guided the renminbi higher, just as exporters rushed to convert dollar receipts.
Japan’s yen also surged as Tokyo stocks briefly hit their highest in 33 years, while speculation about a tightening of the Bank of Japan’s monetary policy persisted and centred around accelerated wage growth.
