Archives of “November 23, 2021” day

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US President Biden is speaking on Tuesday – on the economy and lowering prices for the American people

  
  Analysis

I posted on this yesterday, Biden will “deliver remarks on the economy and lowering prices for the American people”.

Timings available now:
  • 2pm US ET
  • which is 1900 GMT
  • 23 November 2021
We already got the Fed Chain announcement out of the way on Monday – 4 more years for Powell and Brainard to Vice-Chair.
Chatter is an announcement of an oil reserve release is imminent, perhaps this’ll be the venue. Buy the fact would seem to be a good tip.
I posted on this yesterday, Biden will "deliver remarks on the economy and lowering prices for the American people". 

Estimate the US government could fund itself through to mid-January in absence of debt ceiling agreement

  
  Analysis

Last week US Treasury Secretary Yellen nominated December 15 as the drop-dead date.

  • the Treasury would lack sufficient resources and risk default after Dec. 15 after making a $118 billion transfer to the Highway Trust Fund.
However,  research firm Wrightson ICAP said in a note to clients that based on the Treasury’s debt issuance plans, the department should be able to go well past that deadline.
  • could be able to fund government operations into the first half of January without a debt ceiling increase
Info comes via Reuters.

Federal Reserve FOMC Minutes are due Wednesday 24 November 2021 – preview

  
  Analysis

Now that speculation about who will be the Chair of the Federal Reserve over the coming four years is over, its back to regular scheduling!

  • Biden picks Powell
Next on the Fed agenda is the release of the minutes to the November 2nd-3rd meeting.
Via Scotia (in brief from a longer piece):
  • a watchful eye toward discussions around timing lift-off for the policy rate. The meeting concluded that the FOMC “is prepared to adjust the pace of purchases if warranted by changes in the economic outlook” and so watch for a discussion around the criteria for doing so. A fuller discussion is likely at the December meeting.
  • It’s unlikely that the minutes will reveal a further dialogue on broader plans for the balance sheet.
  • There may be a limited discussion around lift-off timing, but here too the December meeting and its fresh dot plot will likely be more revealing.
Apparently, Brainard would’ve been more of a dove than Powell. Sheesh. Powell’s middle name is Dovey McDoveface!
Some guy with a dove:
Now that speculation about who will be the Chair of the Federal Reserve over the coming four years is over, its back to regular scheduling!

Oil update – Biden’s SPR release plans and the expected OPEC+ response

  
Analysis, Crude

Updating the latest on oil from Monday US time, in brief:

The talk on the oil reserve release is US President Biden is said to be preparing to announce a strategic petroleum reserve release alongside similar from other countries ( India, Japan and South Korea included)

  • amount released is expected to around 35mbbl over time,
OPEC said such a release is not justified given current conditions in the market
  •  and would reconsider plans to add more oil production when they meet next week
On the demand side, rising coronavirus cases in Europe and associated movement-limiting restrictions weigh.
Updating the latest on oil from Monday US time, in brief:

US stocks close near lows for the day as rates move higher

  
Analysis, US Market

NASDAQ index falls -1.26%. Dow snapped a three day losing streak but closes near it’s lows

The major US indices are closing near lows for the day as higher rates hurt investor sentiment.

The NASDAQ index – which closed at a record level on Friday and also made new all-time intraday highs today  – turned around and was the biggest decliner. The S&P index also made new intraday highs, but is closing lower on the day (and at the lows).

A snapshot of the closing levels shows:
  • Dow industrial average +17.28 points or 0.05% at 35619.26. The high level took the index up 327.68 points or 0.92%. The low for the day reached 35615.55, just off the closing level
  • S&P index fell -15.73 points or -0.33% at 4682.23. It’s high price stalled at a gain of 45.78 points up 0.97%. The low for the day reached 4681.98 (also just off the closing level)
  • NASDAQ index closed down 202.7 points or -1.26% at 15854.80 after reaching a high change of 154.70. The pair close just off it’s lows for the day at 15851.00 (just off the closing level)
Higher rates took its toll on the more riskier NASDAQ index. The five year yield rose 10.9 basis points.
The U.S. Treasury sold both two and five year notes with less than stellar demand from both domestic and international investors.
NASDAQ index falls -1.26%. Dow snapped _a three day losing streak but closes near it's lows
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