This Week
Wednesday’s Fed Meeting Minutes are expected to be the most significant data release this week, as the releases of top-line US economic data will continue to be delayed for some weeks. Unconfirmed reports suggest September’s NFP figures could also be published on Thursday. In the earnings season, Nvidia will post its results on Wednesday after the market, which will mark the winding down of quarterly releases. President Trump is expected to announce his next moves in relation to Venezuela and may comment on other geopolitical and economic matters.
Stocks
EXXON
Exxon’s price climbed 1.45%, as the stock bucked the mixed market trend driven by doubts over the timing of Fed rate cuts. News that its Golden Pass LNG terminal in Texas will begin operations by the end of the year boosted the stock price. After stronger falls in recent weeks, somewhat stabilised oil prices also underpinned the energy company’s stock price. Exxon’s recent better-than-expected earnings results and raising of its fourth-quarter dividend are also positive factors.
JOHNSON AND JOHNSON
J&J’s stock price jumped 5.5% to hit a record high on Friday after the announcement that the US FDA cleared the company’s Caplyta drug for major depressive disorder treatment, boosting its revenue growth prospects. Successful phase 3 trials and recent acquisitions have also improved the position of the company in the eyes of traders. The wider pharmaceutical sector was broadly higher last week due to reported accelerating healthcare spending globally.
Commodities
Crude Oil
Crude oil prices rose 0.1% with the commodity rebounding from a three-week low midweek after a Ukrainian drone attack on a major Russian oil export hub tightened supply. Ongoing sanctions limiting Russian exports continue to have some impact. However, rising US inventories put pressure on oil prices, while shutdown-related market negativity also limited oil’s gains.
Gold
Gold prices climbed 1.8% and tested a three-week peak as geopolitical tensions grew amid concerns that the US could launch a military attack on Venezuela and that the war between Russia and Ukraine is only escalating. A softer dollar also provided some support to gold prices, which makes the precious metal more attractive for foreign currency buyers.
Silver
Silver prices surged 4% and posted a four-week high before paring some gains by Friday’s close. The rally was caused by some relief over the ending of the government shutdown and reports that the silver market will remain tight and is on course for its fifth successive annual structural deficit. Additionally, silver is found as a safe-haven instrument amid uncertainty over the US economy, in the absence of current economic data.
USD/JPY
The USD/JPY increased 0.46% to a nine-month high after Japan’s government continued to signal that rate hikes from the Bank of Japan are unlikely to take place in the near future. However, Japan’s Ministry of Finance signaled that it could intervene to prop up the Yen if the decline became more pronounced, but outlined that the primary focus is on inflation for the time being.
Recap
Last week, the S&P 500 grew 0.1%, the Nasdaq fell 0.5% and the Dow Jones increased 0.3%.
US stock indices were highly volatile as uncertainty over the consequences of the now-concluded longest government shutdown in history impacted sentiment, amid a lack of major US economic data. Last week, stock trading saw a rotation away from tech stocks to sectors like pharmaceuticals and energy. In geopolitics, the focus was on whether or when the US might choose to attack Venezuela, as President Trump was reported to be close to a final decision.
Crude oil prices inched upwards while natural gas prices jumped to an eight-month high amid colder weather forecasts over much of the US. Gold prices and silver prices climbed as safe-haven demand increased. Platinum prices and Palladium prices fell amid disappointing economic data from China.