On Monday, European equities closed lower as government bond yields increased, following warnings from ECB officials against premature rate cuts. Meanwhile, the US equity market was closed due to a public holiday. Government bond yields rose across the region after ECB’s chief economist Philip Lane cautioned on Saturday that rapid rate cuts could lead to Read More…
On Friday, currency futures fell despite a drop in US producer prices in December, increasing the likelihood of an early US rate cut. At the same time, the dollar fell after rising during the day due to safety buying following US and British military actions in Yemen. US producer prices (Source: Bureau of Labor Statistics) Read More…
On Thursday, gold dropped to a one-month low as the dollar rose due to hotter-than-expected inflation data. Moreover, hawkish remarks from Fed officials raised concerns that higher interest rates might continue beyond March. The dollar index rose after US consumer prices rose more than anticipated in December because it potentially delays an anticipated US rate Read More…
On Wednesday, US crude oil prices fell sharply due to an unexpected increase in US crude stockpiles. The report raised concerns about demand in the largest oil market. WTI futures vs crude stockpiles (Source: Bloomberg, EIA) Despite an initial 1% gain, prices reversed direction following the US Energy Information Administration’s report. There was a surprise Read More…
On Tuesday, equities ended lower as there was a slight increase in Treasury yields. Moreover, investors were speculating on the timing and magnitude of Fed rate cuts in 2024 and anticipating inflation data later in the week. The likelihood of a rate cut in March has decreased from 79% to 65.7%, according to CME’s FedWatch Read More…
On Monday, equities gained as a drop in Treasury yields lifted mega-cap stocks. Treasury yields fell ahead of inflation readings and new government debt supply, with the 10-year US Treasury yield hitting a session low of 3.966%. The Nasdaq and S&P 500 saw their first daily percentage climbs of over 1% since Dec. 21. These Read More…
