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Markets Update: US and European stocks fluctuate amid plans for a French no-confidence vote. Trump's tariff threat against BRICS strengthens the dollar. Chinese stocks rise due to strong manufacturing surveys. The risk premium on French government bonds increases.
Global Markets Roundup: 2 December 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Monday, U.S. and European stocks fluctuated after France's far-right and left-wing parties announced their support for a no-confidence vote against Prime Minister Michel Barnier, potentially leading to the French government's collapse later this week. French stocks PX1Â dropped approximately 0.6%, while broader European shares SXXPÂ retreated on the news, ending the day about 0.3% higher. Wall Street stocks showed mixed performance on Monday, buoyed by technology stocks, with investors focusing on a series of economic data expected this week. The Dow Jones Industrial Average DJIÂ decreased by 0.32% to 44,768, the S&P 500 SPXÂ increased by 0.2% to 6,045, and the Nasdaq Composite IXICÂ climbed about 1% to 19,408. In Asia, shares from mainland China 3399300Â rose by 0.8%, driven by a strong outcome in a private manufacturing survey conducted on Monday.
The difference between France and Germany’s 10-year bond yields—a metric for French borrowing costs relative to the euro zone standard—increased by up to 7 basis points to 87.4 bps, though it stayed below last week's 12-year peak of 90 bps. Outside of France, global stocks saw a slight increase, impacting the MSCI All-World index. The Federal Reserve is under close scrutiny, and Friday's monthly payrolls report might be crucial for policymakers deciding on a potential rate cut on Dec. 18. Several Fed officials are scheduled to speak this week, including Fed Chair Jerome Powell on Wednesday. Traders estimate the likelihood of a quarter-point cut at around 60%.
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In currencies, The euro itself EURUSDÂ found little relief, decreasing by 1% to $1.0468, as the dollar received a boost over the weekend from U.S. President-elect Donald Trump, who cautioned BRICS emerging nations against attempting to replace the greenback with another currency. The euro has depreciated by about 14.5% over the past three months, partly due to concerns that the euro zone's economic health might necessitate the European Central Bank to implement deeper interest rate cuts than previously anticipated. The dollar index DXY, which evaluates the currency against six others, rose 0.6% to 106.67, having increased by 1.8% in November. The yen USDJPY, meanwhile, remained steady near Friday's six-week high of 149.47. EURUSDÂ | USDJPY | GBPUSD | AUDUSD | NZDUSD
In commodities, Gold prices decreased by 0.34% to $2,644 per ounce, influenced by a robust dollar, after experiencing a drop of more than 3% in November, the steepest monthly decline since September 2023. Meanwhile, oil prices climbed following the release of Chinese manufacturing data and as Israel renewed attacks on Lebanon despite a ceasefire, heightening worries about potential supply disruptions from the area. Both Brent crude and U.S. futures BRN1! increased by nearly 1% to $72.39 a barrel and $68.58, respectively. GOLD | CL1! | ZC1! | ZS1! HG1!
Looking forward refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team