🧮Equity market hanging on losses over election uncertainty🔭

The stock markets were broadly lower as analysts are questioning the rise of the red wave, which was not seen in the current election result. However, market participants generally favour some level of Republican win since the group is less inclined to enormous fiscal spending, which has been worrisome in an inflationary environment. This sends bond yields generally higher and puts pressure on equity once again. 

🎲CPI: The pivotal point again🔑

As the election is over, market participants are now waiting for Thursday’s inflation data. The general forecast for an 8% inflation year-to-year comparison set the tone of expectation. A higher CPI print will once again spur the terminal rate expectations much higher and speak fear of another aggressive monetary tightening narrative by the Fed. 

With the still hawkish statement by the FOMC, investors aren’t really to pounce full in on the idea of a Fed pivotal given the Fed’s persistent reinforcement of the desire to fight inflation. 

💣Cryptocurrency on a downward spiral🔫

The liquidity crunch in FTX is causing a turbulent wave across the crypto market as Bitcoin plunged to a new low since November 2020. The volatile session comes after Binance walked away from a rescue package for FTX, given concerns about regulatory scrutiny and investigation. 

Pika World expects more volatility to unfold until the saga is over. 

📮What’s on the menu today?🗽

At 9.30 pm, we will receive the Core CPI data for October on a y-o-y basis which is expected to moderate slightly to 6.5% from 6.6%. Then the CPI on the YoY basis for October is set to moderate to 8% from 8.2%. It is likely to be a market mover as investors await more clues on the possibility of the Fed able to tone down on rate hikes. 

FOMC member George expects to speak at 2.30 am, and Mester will speak at 1.30 am.