Events such as Employment, borrowing and Stocks in the Spotlight
US Economy: Fed lifts bonds, job concerns, currency swings. Global events affect oil, forex. New Forex Trading chances in 2024
United States Economic Events
The Federal Reserve’s meeting minutes buoyed the bond market after significant losses in small-cap stocks. The Fed acknowledged concerns about policy restrictiveness amid a slowing economy. Job openings hit a three-year low in November, while the ISM manufacturing survey showed contraction and falling input prices.
Fed’s Impact: Odds for an immediate rate cut dropped, with futures markets showing reduced chances for a first Fed rate cut by March (down to 75%). However, markets still priced in 146 bps of rate cuts for the year.
Employment Data and Market Reactions
Robust jobs data led to rising Treasury yields, affecting technology stocks adversely. The S&P 500 remained relatively stable despite these movements.
Job Data: US companies increased hiring in December, and jobless claims came in below estimates, leading swaps traders to trim bets on Fed easing post-data.
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Global Events & Oil
Global tensions in the Middle East elevated supply chain disruption worries, impacting oil prices. Oil rallied over 1% amid disruptions in Libya and increased U.S. strategic petroleum reserve purchases.
Oil Prices: West Texas Intermediate crude traded around $73 a barrel due to supply disruptions and geopolitical events.
Market Snapshot
Stocks: Mixed performances across major indices (S&P 500, Nasdaq 100, Dow Jones, Stoxx Europe 600, MSCI World index).
Currencies: Dollar Spot Index rose by 0.1%, yen weakened by 1%, euro rose by 0.2%, and the pound remained stable.
Cryptocurrencies: Bitcoin rose by 0.9% to $43,342.89, and Ether rose by 0.4% to $2,236.12.
Bonds: U.S. 10-year Treasury yields advanced by seven basis points to 3.99%, Germany’s 10-year yield rose by 10 basis points to 2.13%, Britain’s 10-year yield advanced by eight basis points to 3.72%.
Global Events
European markets opened higher, influenced by Wall Street’s slow start in 2024. Major indices like Nikkei 225, DAX, CAC 40, and FTSE 100 showed varying gains.
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