US retail sales lower expectations for Fed rate cuts
On Friday, US retail sales further lowered investor expectations for a Fed rate cut in December. Retail sales rose 2.8% year-on-year in October, following a 2.0% increase in September.
Upward trends in retail sales could fuel demand-driven inflation, potentially delaying Fed rate cuts.
The CME FedWatch tool reflected the impact of the data and Powell’s recent comments on market sentiment toward Fed rates. The probability of a 25 basis point Fed rate cut fell from 64.6% on November 8 to 61.9% on November 15.
Chinese regulator drives market gains in Hong Kong and mainland China
On Friday, November 15, the Chinese Securities Regulatory Commission guided listed companies on market value management. reportedly encouraging publicly traded companies to reflect corporate value through share buybacks and other methods.
The prospect of share buybacks and other methods to boost share prices boosted buyer demand for Hong Kong and mainland Chinese-listed shares on Monday, November 18.
Governor Ueda of the Bank of Japan influences the Nikkei index during interest rate hikes
On Monday, Bank of Japan Governor Kazuo Ueda backed a further adjustment in monetary policy, weighing on Nikkei Index-listed stocks. The BoJ governor reportedly said: