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NEW YORK, Nov 6 – Many of the world’s biggest multi-strategy hedge funds crossed the finishing line of a challenging October for markets with gains, sources familiar with the matter told Reuters.

Multi-strategy hedge funds have an advantage in difficult times for markets, because they trade many different assets from equities to currencies and credit, and in multiple different strategies.

The Citadel flagship hedge fund Wellington ended October up 1%, and Point72 gained 1.2%, while Millennium rose 0.6%, Schonfeld Fundamental Equity gained 1.15%, and ExodusPoint advanced 0.69%, according to the sources.

The funds’ performances year-to-date, however, are more mixed, though still positive. Citadel’s flagship soared 13.7% in the first 10 months of the year, and Millennium and Point72 gained 8.3% each. ExodusPoint and Schonfeld rose 5.39% and 2.1%, respectively.

Portfolio managers were caught with wild swings in markets in October.

US Treasury yields, which move inversely to prices, surged in October, with benchmark 10-year yields hitting 5% for the first time since 2007. The bond sell-off, which has taken Treasuries to the cusp of an unprecedented third straight year of losses, was caused by concerns that interest rates will remain high for long due to a surprisingly strong economy, and also reflected rising investor concerns over increases in government bond supply.

In equities, all major Wall Street indexes ended October down, with the S&P 500 falling 2.2% and the Nasdaq Composite down 2.8%. Both indexes posted a third straight month of losses.

(Reporting by Carolina Mandl, in New York; additional reporting by Davide Barbuscia; editing by Jonathan Oatis)

Nov 6 – Gold eased on Monday as US Treasury yields rose, with investors remaining cautious as they gear up for a host of Federal Reserve speakers this week including Jerome Powell for clarity on US rate cuts.

Spot gold fell 0.7% to USD 1,979.19 per ounce by 2:41 p.m. ET (1941 GMT) after rising above the key USD 2,000 level on Friday. US gold futures settled 0.5% lower at USD 1,988.60.

Risk appetite is a bit better and there have been no major surprise developments from the Israel-Hammas war, and this is taking away a little bit of the safe-haven bidding for gold and silver, said Jim Wyckoff, senior analyst at Kitco Metals.

Bullion gained over 7% in October as the Middle East conflict boosted safe-haven demand.

Wall Street’s main indexes turned negative after inching up earlier, while Benchmark 10-year US Treasury yields rose, as investors kept their eyes peeled for at least nine Fed members speaking this week, including Powell on Nov. 9.

Traders are pricing in a 90% chance the Fed will leave rates unchanged in December, according to the CME FedWatch tool.

“Gold and silver market bulls have a little bit of ammunition as the expectation is that there will be no further rate hikes, which is pressuring the US dollar,” added Wyckoff.

Gold is sensitive to rising US interest rates, as they increase the opportunity cost of holding the non-yielding asset.

For gold to sustainably move above USD 2,000/oz, it may need a clearer signal from the Fed that cuts are coming, and the return of investors to ETFs (exchange-traded-funds), Heraeus Metals wrote in a note.

Speculators raised their net long positions in COMEX gold futures by 15,661 contracts to 106,343 in the week ended Oct. 31, CFTC data showed on Friday.

Silver was down 0.6% to USD 23.05 per ounce.

Platinum shed 2.5% to USD 906.86, and palladium fell 1.9% to USD 1,098.54, both eyeing their biggest daily declines since October.

(Reporting by Ashitha Shivaprasad and Anushree Mukherjee in Bengaluru; Editing by Krishna Chandra Eluri)

HOUSTON, Nov 6 – Oil prices edged higher on Monday after top exporters Saudi Arabia and Russia reaffirmed their commitment to extra voluntary oil supply cuts until the end of the year.

Brent crude futures settled 29 cents, or 0.34%, higher at USD 85.18 a barrel, while US West Texas Intermediate crude was up 31 cents, or 0.4%, at USD 80.82.

Saudi Arabia confirmed on Sunday it would continue its additional voluntary cut of 1 million barrels per day (bpd) in December to keep output around 9 million bpd, a ministry of energy source said.

Russia also announced it would continue its additional voluntary cut of 300,000 bpd from its crude oil and petroleum product exports until the end of December.

“The announcement shows that Saudi has its shoulder to the wheel as it looks to tighten markets and increase prices,” John Kilduff, partner at Again Capital LLC in New York.

The cuts could be extended into the first quarter of 2024 because of “seasonally weaker oil demand at the start of every year, ongoing economic growth concerns, and the aim of producers and OPEC+ to support the oil market’s stability and balance”, said UBS strategist Giovanni Staunovo.

Oil prices rebounded after both benchmarks lost about 6% in the week to Nov. 3, as supply concerns driven by Middle East tensions eased.

UN agency leaders demanded a humanitarian ceasefire on Monday, a month into the war in Gaza, as health authorities in the enclave said the death toll from Israeli strikes now exceeded 10,000.

A weaker dollar also helped oil prices. The dollar index fell as low as 104.84, the weakest since Sept. 20. A weaker dollar boosts demand for crude purchases by holders of foreign currency.

However, an easing of crude throughput at Chinese and US refineries hurt prices.

Refinery runs are easing at Chinese refineries from record levels in the third quarter because of eroding profit margins and a scarcity of export quotas to the end of the year, traders and industry consultants told Reuters.

Meanwhile, US crude oil refiners this quarter will pull back from red-hot summer run rates as weak gasoline margins and plant overhauls cool operating goals, according to company statements and oil analysts.

Investors will be watching for further economic data from China on Tuesday following weak October factory data last week.

Macroeconomic concerns persist in Europe, where Purchasing Managers’ Index (PMI) data showed the downturn in euro zone business activity accelerated in October as demand weakened further.

The Bank of England Chief Economist Huw Pill said it might wait until the middle of next year before cutting interest rates from their current 15-year high. Lower borrowing cost is likely to boost spending and demand for crude oil.

(Reporting by Robert Harvey, Florence Tan and Colleen Howe; Editing by Deepa Babington, Mark Potter, Christina Fincher and Bill Berkrot)

Nov 3 – Gold prices gained on Friday as the US dollar and Treasury yields slipped after weak US jobs data cemented expectations that the Federal Reserve is done raising interest rates.

Spot gold rose 0.4% to USD 1,994.28 per ounce by 3:14 p.m. ET (1914 GMT), after hitting a session high of USD 2,003.69. US gold futures settled 0.3% higher at USD 1,999.2.

US job growth slowed more than expected in October, while wage inflation cooled, pointing to an easing in labor market conditions. Data showed employers added 150,000 jobs in October, below the 180,000 expected by economists.

“If the labor market starts to deteriorate, the Fed will be unable to continue a hawkish path. The data cements the idea of a Fed pause, which is helping gold,” said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Higher rates increase the opportunity cost of holding zero-yield bullion.

Adding to gold’s shine, the dollar index fell 1% and benchmark 10-year US Treasury yields fell to an over one-month low after the data.

Traders are now pricing in a 95% chance that the US central bank will leave rates unchanged in December compared to 80% before the data, according to the CME FedWatch tool.

Craig Erlam, senior markets analyst at OANDA said in a note that “USD 2,000 is a big psychological barrier (for gold) and momentum indicators suggest it may be a struggle at this time.”

Investors also keep a tab on the Middle East conflict. Gold rose more than 7% in October on safe-haven demand.

“While peace isn’t likely to break out, the situation might not escalate into a regional conflict in the short term. Given gold has had a tremendous run in the past month, we could see some consolidation or even a modest retracement,” said Tai Wong, a New York-based independent metals trader

Spot silver was up 2% at USD 23.21 per ounce, platinum rose 1.5% to USD 932.78 and palladium added 1.8% to USD 1,119.21.

(Reporting by Ashitha Shivaprasad and additional reporting by Daksh Grover in Bengaluru; Editing by David Evans, Shweta Agarwal and Shailesh Kuber)

Nov 3 – Investors channelled substantial sums into global money market funds in the week leading to Nov. 1, seeking the safety of these assets ahead of pivotal policy decisions from the world’s leading central banks.

The move towards money markets underscored a broader sense of caution as markets braced for the US Treasury Department’s update on financing requirements against a backdrop of an expanding budget deficit.

Investors pumped in a net USD 65.6 billion into global money market funds in their biggest weekly net purchase since March 22, data from LSEG showed.

On Tuesday, the Bank of Japan loosened its yield curve control with another policy adjustment, hinting at a cautious retreat from its extensive monetary stimulus.

A day later, the Federal Reserve maintained interest rates steady, with Chair Jerome Powell signaling the potential for further tightening.

US, European, and Asian money market funds drew inflows worth USD 56.52 billion, USD 7.43 billion, and USD 3.59 billion, respectively.

Global equity funds drew a net USD 1.79 billion, the first weekly inflow in seven thanks to a surge in demand in Asia and cooling selling pressure in the US and Europe. Investors poured about USD 2.63 billion into Asian funds, the most in four weeks.

Sectoral equity funds still witnessed outflows of about USD 4.05 billion, the highest in four, as financials, healthcare and tech lost USD 1.67 billion, USD 574 million, and USD 532 million, respectively.

Global bond funds experienced USD 5.54 billion in outflows, over ten times higher than last week. Government bond funds saw redemptions of about USD 298 million, halting a 28-week buying streak. High-yield funds faced USD 1.83 billion in sales, while corporate bond funds drew USD 1.11 billion.

In commodities, precious metal funds received USD 1.13 billion worth of inflows compared to USD 1.04 billion worth of outflows in the previous week. Additionally, energy funds received USD 44 million, a second weekly inflow.

Data for emerging markets, encompassing 28,658 funds, showed investors withdrew a net USD 3.06 billion from EM equity funds, extending net selling into a 12th week. EM bond funds also suffered USD 1.62 billion worth of disposals, a 14th straight week of outflows.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Varun H K)

Nov 3 – Oil prices settled more than 2% lower on Friday as supply concerns driven by Middle East tensions eased, while jobs data raised expectations the US Federal Reserve could be done hiking interest rates in the biggest oil-consuming economy.

Brent crude futures were down USD 1.92, or 2.3%, to USD 84.89 a barrel. US West Texas Intermediate crude futures fell USD 1.95, or 2.4%, to USD 80.51 a barrel.

Both benchmarks settled down more than 6% on the week.

Hezbollah leader Sayyed Hassan Nasrallah, speaking for the first time since the Israel-Hamas war erupted, warned on Friday that a wider conflict in the Middle East was possible but did not commit to opening another front on Israel’s border with Lebanon.

“The market is taking this conflict in its stride, as it looks to be neither a significant demand or supply disruption event,” said John Kilduff, partner at Again Capital LLC in New York.

US job growth slowed more than expected in October, official data showed, while wage inflation cooled, pointing to an easing in labor market conditions.

The data bolstered the view that the Federal Reserve need not raise interest rates further.

The Fed held interest rates steady this week, while the Bank of England kept rates at a 15-year peak, supporting oil prices as some risk appetite returned to markets.

But a private sector survey on Friday showed that while China’s services activity expanded at a slightly faster pace in October, sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.

The data followed a reading from the National Bureau of Statistics on Wednesday that showed China’s manufacturing activity unexpectedly contracted in October.

On the supply side, Saudi Arabia is expected to reconfirm an extension of its voluntary oil output cut of 1 million barrels per day through December, based on analyst expectations.

The US House of Representatives easily passed a bill to bolster sanctions on Iranian oil in a strong bipartisan vote, but it was unclear how effective the legislation would be if signed into law.

While Congress can pass sanctions legislation, such measures often come with national security waivers that allow presidents discretion in applying the law.

China could also continue to import the oil despite new sanctions.

US energy firms this week cut the number of oil and natural gas rigs operating to their lowest since February 2022, energy services firm Baker Hughes said on Friday.

(Additional reporting by Ahmad Ghaddar in London; Jeslyn Lerh in Singapore; editing by Jason Neely, Kirsten Donovan, David Gregorio, and Louise Heavens)