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Markets Update: Markets anticipate additional US rate cuts in 2025. OPEC+ likely to prolong production cuts. Yen stabilizes amid reports affecting rate hike expectations.
Global Markets Roundup: 5 December 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Markets are expecting further US rate reductions in 2025. OPEC+ is expected to maintain production cuts. The yen remains stable as reports influence rate hike expectations. Bitcoin surpassed $100,000 on Thursday, with investors optimistic about a favorable regulatory change in the U.S., while Asian stocks remained strong following Wall Street indexes reaching record highs due to increased confidence in U.S. interest rate reductions. Bitcoin BTCUSDÂ reached the $100,000 level in the Asia morning and was last reported at $103,400.
The S&P 500 SPX, Nasdaq IXIC, and Dow DJI all reached record highs overnight. In the past week and a half, markets have nearly fully anticipated an additional U.S. rate cut for 2025, with the implied likelihood of a December cut rising from 50% to about 75%. S&P 500 futures ES1! slipped slightly while European futures FESX1! declined by 0.2%. German stocks DAX have increased by 4% over the week, reaching record highs. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell by 0.2% as selling in Hong Kong countered gains in Australia and Japan. Japan's Nikkei NI225 reached a three-week high, last up about 0.4%. Hong Kong's Hang Seng HSI dropped approximately 1.1%. The U.S. ISM survey, closely monitored, indicated that services sector activity slowed in November after significant gains in recent months. Benchmark 10-year Treasury yields US10Y decreased by three basis points to 4.182%, remaining steady in Asian trade. Federal Reserve Chair Jerome Powell made balanced remarks at a New York Times event on Wednesday, describing the economy as strong but not opposing market expectations for rate cuts. Earlier this week, Fed Governor Christopher Waller mentioned he was inclined towards a cut later in December. European retail sales figures and German factory orders are expected later in the day, though the week's focus is on U.S. employment data on Friday, where a strong report could reverse bond-market trends.
In the foreign exchange markets, the dollar followed U.S. yields downward in the foreign exchange market, though not significantly. The euro EURUSDÂ remained at $1.0525 due to political unrest in France, where the government lost a confidence vote for the first time since 1962. French bond futures (FOATc1) were stable during Asian trading. The yen USDJPYÂ has given back some recent gains, and expectations for a December rate hike have diminished after reports suggested policymakers might be cautious. It was slightly stronger at 150.14 per dollar on Thursday. The Australian dollar AUDUSD, at $0.6435, was recovering from its steepest drop in a month on Wednesday, following weaker-than-expected growth data. EURUSDÂ | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, persistent hopes for Chinese stimulus helped sustain iron ore prices, while oil prices edged up in anticipation of an OPEC+ meeting scheduled for later in the day. According to sources cited by Reuters, the Organization of the Petroleum Exporting Countries and its allies in OPEC+ are expected to prolong their current oil production cuts. Brent crude futures BRN1! increased by two cents to reach $72.33 per barrel. Gold prices GOLD remained stable at $2,649 per ounce. The most actively traded soybean contract on the Chicago Board of Trade (CBOT) ZS1! increased by 0.3% to $9.87 per bushel. Wheat ZW1! rose by 0.1% to $5.48-3/4 per bushel, while corn ZC1! decreased by 0.4% to $4.28-3/4 per bushel. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
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