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Markets Update: U.S. stocks rise in early trading, driven by utilities. The dollar falls following four consecutive sessions of gains. U.S. Treasury yields reduce their losses after manufacturing data.
Global Markets Roundup: 3 January 2025
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Major global stock indexes climbed on Friday but was still set for a weekly drop, while the dollar, after its recent surge, eased but was bolstered by a stronger-than-expected U.S. manufacturing report. U.S. stocks increased in early trading as the S&P 500 and Nasdaq attempted to end a five-day losing streak, their longest since mid-April. Gains were widespread, with all 11 major S&P sectors showing positive movement. The U.S. dollar had rallied late last year as investors anticipated that President-elect Donald Trump's policies would boost growth and inflation, leading to fewer rate cuts from the Federal Reserve and higher yields on U.S. Treasuries, while European central banks are expected to continue cutting rates.
The Dow Jones Industrial Average (.DJI), increased by 174.10 points, or 0.41%, to 42,565.96; the S&P 500 (.SPX), gained 35.43 points, or 0.60%, to 5,904.03; and the Nasdaq Composite (.IXIC), rose 151.10 points, or 0.78%, to 19,431.27. MSCI's global stock index (.MIWD00000PUS), climbed 3.17 points, or 0.36%, to 842.95 - marking its largest daily percentage increase since Dec. 24 - but was still headed for its third weekly decline in the past four. In Europe, stocks were lower, with the pan-European STOXX 600 (.STOXX), index down 0.5% but on course for a second consecutive weekly gain. Trading volumes were light at the end of a holiday-shortened week.
In the foreign exchange markets, the dollar index, which gauges the greenback against a selection of currencies, slipped 0.05% to 109.18 but reduced its losses after the Institute for Supply Management (ISM) reported that a crucial manufacturing index rose more than anticipated to 49.3 last month, marking the highest level since March, up from 48.4 in November. The greenback was poised for its largest weekly percentage increase since mid-November, climbing about 1.4%, and marking its fifth consecutive week of gains, having reached a two-year peak of 109.54 in the previous session. The euro EURUSD increased by 0.11% to $1.0276 but was headed for its fifth consecutive weekly decline and its steepest weekly percentage drop since mid-November. Against the Japanese yen USDJPY, the dollar weakened by 0.04% to 157.46, while the British pound rose by 0.07% to $1.2389. The yield on benchmark U.S. 10-year notes fell 0.4 basis point to 4.573%, staying above the 4.5% level that has been challenging for equities, after hitting an 8-month high of 4.641% earlier this week. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Gold futures decline, yet they are still set to end the first trading week of the year with an increase due to safe-haven demand. Futures have decreased by 0.4% to $2,657.70 per troy ounce but have risen 0.2% over the week. U.S. crude increased by 0.83% to reach $73.74 per barrel, while Brent climbed 0.46% to $76.28 per barrel, supported by colder weather in Europe and the U.S., along with additional economic stimulus announced by China. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1!
In agricultural commodities, arabica coffee futures on ICE KC2! decreased by 1.6% to $3.17 per lb, after increasing by 2.3% on Thursday. Robusta coffee RC2! dropped 0.3% to $5,042 a ton, with attention still on the delays to the Vietnam harvest due to wet weather, which could also result in quality issues in the world's leading robusta producer. Raw sugar SB1! declined 0.2% to 19.69 cents per lb, following a 2.4% rise on Thursday. March white sugar SF1! decreased 0.2% to $512.20 a metric ton. New York cocoa futures on ICE CC1! dropped 0.45% to $11,087 a ton. London cocoa C1! increased 0.2% to 8,995 pounds a ton, supported by the recent weakness of the pound against the dollar. The most-active CBOT corn contract ZC1! decreased by 0.5% to $4.57-1/4 a bushel, following an earlier match of Thursday's peak of $4.59-3/4, the highest since mid-June. CBOT soybeans ZS1! fell 0.6% to $10.05-3/4 a bushel, after reaching a seven-week high of $10.15-3/4 on Thursday. CBOT wheat declined by 0.6% to $5.42-1/4 a bushel.
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