This Week
More US data delayed by the shutdown will be released this week, including Retail Sales and GDP data on Wednesday. Traders will watch to see whether Ukraine and Russia could agree on a peace deal and any further information from President Trump on economic or US foreign policy, including Ukraine and Venezuela.
Stocks
GOOGLE (ALPHABET)
Google’s price jumped 3.91%, with the tech stock hitting a record high midweek, despite the falls in the wider markets and among tech rivals. Early in the week, news emerged that Berkshire Hathaway had purchased $4.93 billion of Google stock, boosting investor confidence. The rollout of Gemini 3, Alphabet’s new AI language model, drove further optimism with Loop Capital raising its forecast on the stock to $320 amid other statements from investment banks stating its improving AI offering is a major catalyst for further growth.
GILEAD
Gilead’s stock price grew 0.5%, posting a record peak midweek after phase 3 trial results for its simplified HIV drug were positive. Reported buying from institutional investors, such as Westpac Banking Corp, was also considered to reflect confidence. Recent better-than-expected earnings also triggered a number of investment banks, such as JPMorgan, to increase their price targets.
Commodities
Crude Oil
Crude oil prices slipped 2.4% after loading resumed at a key Russian oil export hub sooner than expected. Goldman Sachs also warned of a rising global oil supply over the next year, pressuring prices. While falling inventories provided some support, a stronger greenback and concerns over interest rates weighed on ‘black gold’.
Gold
Gold prices declined 0.75% after a divided Fed outlined in its meeting minutes that there was disagreement on whether to cut interest rates at the last meeting. Higher-than-expected Nonfarm payrolls data (from September) and mixed Initial Jobless Claims data added to the uncertainty. The dollar gained in value, making gold less attractive to foreign currency buyers. Later in the week, the US’s latest peace plan for Ukraine also undermined the precious metal.
NATURAL GAS
Natural gas prices rose 0.7% to reach an eight-month high due to heating demand driven by colder-than-average weather. The markets are also pricing in colder weather for early December. US LNG export volumes continue to be high, adding upward pressure on gas prices. Most analysts believe that natural gas markets are balanced compared to oil markets, which are showing signs of excess supply.
AUD/USD
The AUD/USD fell to a three-month low and was down 1.18% by the close of business on Friday. The dollar strengthened on reduced expectations of a rate cut in December. The Aussie remained under pressure as the markets appear to have ruled out any rate cuts in the short term due to lingering inflation, while the pair also lost value due to risk-off sentiment.
Recap
Last week, the S&P 500 fell 2.0%, the Nasdaq dropped 2.7% and the Dow Jones decreased 1.9%.
US stock indices fell after Fed meeting minutes showed division among policymakers and that delayed employment data distorted the overall picture. The data called into question whether the Fed will opt for a rate cut in December, as previously expected. In geopolitics, the US outlined a 28-point peace plan on Ukraine. The plan states that sanctions against Russia would end, and Ukraine is expected to officially respond this week. A refusal could lead to the US withdrawing support from Ukraine. In the earnings season, NVIDIA posted blowout results, including record revenue numbers.
Crude oil prices slipped to a one-month low while natural gas prices posted a fresh multi-month high in another positive week for the commodity. Gold prices were slightly lower while silver prices lost over 2% during the week as the greenback grew. Platinum prices and Palladium prices declined to one-month lows.