Market Information Friday 1 November 2024

Gold prices retreated by nearly 2% after hitting a record high, as strong U.S. economic data and profit-taking influenced the drop. The metal’s rally, fueled by central-bank buying and haven demand, pushed gold’s relative-strength index into overbought territory. With the tight U.S. presidential race adding to market uncertainty, analysts warn of a potential $100 correction in gold prices.

Mark Zandi, chief economist at Moody’s, noted that the 30-year mortgage rate hitting 7% reflects investor expectations of a Trump re-election, which they believe could drive higher inflation and increased government borrowing. Zandi explained that these inflation concerns could push the Federal Reserve to maintain high interest rates longer. Rising rates also reflect investor uncertainty over potential economic shifts under a second Trump term, including tariffs and tax cuts.

As Microsoft’s shareholder meeting approaches, investors are set to vote on whether the tech giant should invest in Bitcoin, with the board advising against it due to current treasury policies. Major shareholders like Vanguard and BlackRock are split on crypto investments, adding uncertainty to the decision, while supportive shareholders like State Street may influence the outcome. Regardless of the vote, Microsoft continues to invest in blockchain technology through its venture arm, M12, which has backed numerous Web3 startups since 2019.

The 6M Euribor decreased with 2 basis points to 2.87% compared to previous business day. The 10Y Swap decreased with 2 basis points to 2.43% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.