Global markets enter the final month of the year with a weak trend

Following a month in which stock indices and bonds rallied, the MSCI All Country World Index also posted its best three-month performance in the last 10 years.

The final month of the year, however, began on a weak note for stock markets. With the exception of Japan's Nikkei 225, which remained flat in Asia, indices were generally in the red.

Following official PMI data released in China on Thursday, which pointed to a weak outlook in manufacturing, the decline in Caixin manufacturing and services indices in November also contributed to the losses. The S&P 500, which experienced one of its best Novembers by rising approximately 9% last month, is retreating in futures trading.

The US 10-year Treasury yield, which fell by 60 basis points throughout November to 4.3264%, began the new month flat.

The Bloomberg Dollar Index, meanwhile, showed little change this morning after falling to 1,239 with a decline of nearly 3% in November.

OIL PRICES FALL AMID OPEC+ DISAPPOINTMENT

The meeting held by OPEC+ members on Thursday resulted in an agreement on a new, voluntary oil supply cut of approximately 900,000 barrels per day. However, as doubts persist regarding whether the cuts will be fully implemented, crude oil prices have fallen.

A statement on the organization's website indicated that members, including Russia, the United Arab Emirates, Kuwait, and Iraq, pledged additional cuts following an online meeting. Saudi Arabia promised to continue its unilateral cut of 1 million barrels per day through the first quarter.

At the end of the contentious talks, Angola rejected the reduced production quota and announced that it would continue production at current levels.

Rapidan Energy Group President Bob McNally said, "Crude oil prices are falling because, so far, investors have not yet seen concrete evidence of credible additional production cuts, beyond the continuation of voluntary cuts by Saudi Arabia and Russia," adding that the market is "confused and bewildered."

Meanwhile, Brazil will join the OPEC+ alliance effective January 1, 2024.

News Source: 12punto