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Markets Update: Greenback and 10-year Treasury yields drop from 3-month highs. Unexpected dip in US jobless claims strengthens strong data trend. Fed's hawkish outlook to be tested by November 1st payroll report. Earnings reports from Alphabet, Amazon, and Meta anticipated next week.
Global Markets Roundup: 25 October 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
On Friday, the dollar was under pressure after experiencing its largest decline in a month against major currencies. This decline occurred as U.S. yields retreated from their almost three-month peak, with buyers stepping in as Treasury prices fell.
There was a mixed performance in Asian stocks, as some markets mirrored the gains seen on Wall Street overnight. However, Japan's Nikkei NI225 declined by 1% due to a significant rebound of the yen against the dollar after hitting a three-week low, coupled with concerns about the coalition government potentially losing its majority in the lower house election on Sunday. Meanwhile, Hong Kong's Hang Seng HSI and a mainland blue chips index 3399300 each saw an increase of approximately 1%. The Australian XJO and South Korean KOSPI stock benchmarks remained steady.
In the foreign exchange markets, The dollar index, known as DXY, which gauges the currency against six major peers, remained relatively stable at 104.03 after decreasing from Wednesday's three-month high of 104.57. However, it has seen a 0.54% increase for the week. The dollar depreciated by 0.18% against the yen, reaching 151.555 yen (USDJPY), as increased warnings from Japanese officials to speculators about betting against the yen bolstered the currency. The euro EURUSD slightly declined by 0.04% to $1.0823. Meanwhile, the pound (GBPUSD) dipped by 0.08% to $1.2966. The recent days have witnessed a surge in speculation about a potential victory for Donald Trump in certain betting markets, supporting U.S. yields and the dollar due to the inflationary tax and tariff policies proposed by the Republican candidate. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Gold prices dipped slightly on Friday to $2,728 per ounce, but were set to record a modest 0.29% increase for the week. Brent crude futures climbed 0.24% to $74.56 per barrel, while U.S. West Texas Intermediate crude rose by 0.23% to $70.36. Copper futures have remained steady at approximately $4.31 per pound on Friday, staying within a horizontal trading range since mid-October due to concerns over the limited supply in the Chinese copper concentrate market. This year, a sharp increase in copper imports occurred in the United States, driven by high demand and limitations in domestic production. In agricultural commodities, on Thursday, the live cattle futures LEI rose by 32 cents to $1.67 at the close of trading. The Central Stockyards online Fed Cattle Exchange sold 393 out of 2,380 head at $189. Southern sales were at $190, while Northern sales ranged from $190 to $192. Feeder cattle futures rose by 67 cents to $1.70. The CME Feeder Cattle Index dropped by $1.15 to $249.56 on October 23. Analysts predict September placements at 96% and marketings at 102% compared to last year. The October 1 on-feed inventory is expected to decrease by 0.3% before the Friday afternoon Cattle on Feed report. COCOA On Thursday, December ICE NY cocoa (CCZ24) closed 3.50% lower at -245 points, while December ICE London cocoa #7 (CAZ24) closed 3.81% lower at -205 points. Cocoa prices hit a 7-3/4 month low for NY cocoa and a 2-week low for London cocoa due to harvest pressures in the Ivory Coast, the world's largest cocoa producer. Recent government data showed a 12.9% increase in cocoa shipments compared to last year. Negative sentiment lingers from last Friday's announcement by Ivory Coast regulator Le Conseil Cafe-Cacao raising the 2024/25 cocoa production estimate. Chicago soybeans and corn posted gains for the week due to strong U.S. demand. Wheat also rose, maintaining a positive trend. Soybeans fell by 0.4% to $9.92-3/4, corn by 0.2% to $4.20-1/2, and wheat rose by 0.4% to $5.83-3/4. Soybeans rose by 2.3%, corn by nearly 4%, and wheat by about 2% for the week. U.S. corn sales hit a high, surpassing expectations and marking the largest week of export sales since May 2021. Soybean sales also reached an eight-week high. BRN1! | CL1! | GOLD | HG1! | KC1! | RC1! | CC1! | LEI
The upcoming week will mark the beginning of a series of significant events, commencing with the publication of the monthly U.S. payrolls report on Friday. Subsequently, the U.S. presidential election is scheduled for Nov. 5, followed by a Federal Reserve policy decision two days later. Additionally, anticipate earnings announcements from prominent tech companies such as Alphabet, Amazon, Apple, Meta, and Microsoft.
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