Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Surges on Rate Fears, Musk Stock Sale, OPEC Report - What's Moving Markets

EconomyNov 11, 2021 13:08
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Geoffrey Smith -- The dollar surged to a 16-month high as the highest inflation in 30 years in the U.S. prompted bets on higher interest rates. The same move also took the edge off the oil market, which awaits OPEC's monthly report. Elon Musk appears to be done selling Tesla (NASDAQ:TSLA) shares for the present, and AMC Entertainment (NYSE:AMC)'s Adam Aron also cashed out big time at the start of the week. Stocks are set to recover from Wednesday's losses though - despite a disappointing update from Disney late on Wednesday. And the first lockdown of the winter in western Europe may be announced this week. Here's what you need to know in financial markets on Thursday, 11th November.

1. Dollar surges on rate hike bets after inflation data

Inflation fears returned to haunt global markets after data showing the U.S. consumer price index rising at its fastest level in three decades.

The 10-Year benchmark Treasury yield rose 10 basis points on Wednesday in response to the numbers, which showed a broad-based and faster-than-expected rise in prices and undermined a subsequent auction of 30-year debt.

The dollar index, meanwhile, rose to its highest since June 2020, as markets anticipated a first rise in U.S. interest rates well ahead of the Federal Reserve’s current guidance.

The bond market is closed Thursday for the Veterans  Day holiday, but there will be central bank action elsewhere, with Mexico and Peru both tipped to raise interest rates.

2. Musk, Aron cash out 

Elon Musk has completed around one-third of the stake sale he indicated was likely on Sunday, according to SEC filings.

The filings show that Musk sold around 4.5 million shares over the course of three days, somewhat more than the shares he acquired through exercising options previously awarded as compensation.

Musk had set up the plan for exercising his options and disposing of his shares on Sept. 14, before his attention-grabbing Twitter (NYSE:TWTR) poll at the weekend.

Musk wasn’t the only CEO cashing out on Wednesday: AMC Entertainment's (NYSE:AMC) Adam Aron also filed to some $53 million of stock, days after the movie theater chain reported disappointing revenue and earnings for the third quarter. Around half of that has been executed already.

Tesla stock was up 2.5% in premarket, as the market digested the short-term supply shock.

3. Stocks set to open with a bounce; Disney struggles with streaming saturation

U.S. stocks are set to open higher later, bouncing back from their inflation-driven losses on Wednesday.

By 6:20 AM ET (1120 GMT), Dow Jones futures were up 47 points, or 0.1%, while S&P 500 futures rose 0..4% and Nasdaq 100 futures rose 0.6%.

Stocks likely to be in focus later will include Rivian (NASDAQ:RIVN), which surged by nearly 30% on its market debut to finish the day with a market value of $85.9 billion.

Also in focus will be Disney, which slumped in premarket after reporting a sharp slowdown in subscriber growth at its Disney+ service, overshadowing improved performances from its movie and theme park divisions.

4. Lockdowns return to Europe

Europe is starting to tighten its public health measures again as the seasonal increase in Covid-19 cases and hospital admissions worsens.

The Dutch government is set to take a decision on Friday on a raft of measures recommended by its scientific advisory board, including the cancellation of events, closing theaters and cinemas, and curfews for cafes and restaurants. Schools, however, would remain open.

The Netherlands’ 7-day infection rate is back at the record high of last winter, while in neighboring Germany, new infections topped 50,000 for the first time ever on Wednesday and deaths rose to their highest since April.  The recent decline in new infections in Britain also reversed sharply on Wednesday.

5. Dollar strength hits oil prices; OPEC monthly report due

Crude oil prices weakened overnight as the rise in the dollar hit various commodities whose prices are generally quoted in dollars.

By 6:30 AM ET, U.S. crude futures were down 0.7% at $80.78 a barrel, while Brent futures were down 0.5% at $82.25 a barrel.

The move was also influenced at the margins by an unwinding of tension in European natural gas markets, as Russia started to ship extra volumes to western and central Europe through its land-based pipelines. That relief might not last long, however: Belarusian President Alexander Lukashenko threatened to stop gas flows through the Yamal-Europe pipeline if the EU proceeds with sanctions against his regime, which has allowed thousands of migrants to seek illegal entry to the EU via its border with Poland and Lithuania.

The Organization of Petroleum Exporting Countries will update its forecasts for global supply and demand in its monthly report later.

Dollar Surges on Rate Fears, Musk Stock Sale, OPEC Report - What's Moving Markets

Related Articles

Top 5 Things to Watch in Markets in the Week Ahead
Top 5 Things to Watch in Markets in the Week Ahead By - Jan 16, 2022

By Noreen Burke -- Earnings season kicks into high gear in the coming week, with the financial sector particularly in focus. Earnings results will test growth stocks...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email