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Markets Update: Oil and gold prices rise. South Korean stocks decline; Wall Street falls. The ECB, SNB, and BoC are all expected to cut rates this week.
Global Markets Roundup: 9 December 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | GOLD | CL1! | ZC1! | ZS1! HG1!
Global stocks declined on Monday as traders concentrated on U.S. inflation data and chip stocks decreased, while Beijing's stimulus promise and the unexpected fall of the Syrian government drove up oil and gold prices. This week's U.S. inflation data could solidify a December interest rate cut by the Federal Reserve at its meeting next week. On Monday, China modified the wording of its monetary policy stance for the first time since 2010, boosting global sentiment. Beijing committed to implementing stimulus to promote economic growth next year. The swift collapse of Syrian President Bashar al-Assad's 24-year rule over the weekend complicates an already tense situation in the Middle East.
Friday's U.S. monthly employment report was sufficiently strong to alleviate concerns about the economy's resilience, yet not so strong as to eliminate the possibility of a Federal Reserve rate cut next week. MSCI's global stock index EURONEXT:IACWI dropped 2.05 points, or 0.23%, to 871.68. The Dow Jones Industrial Average DJI decreased by 111.93 points, or 0.26%, to 44,528.20, the S&P 500 SPX declined 27.07 points, or 0.44%, to 6,063.20, and the Nasdaq Composite IXIC dropped 85.88 points, or 0.43%, to 19,773.89. Nvidia NVDA shares fell over 3% after China's market regulator announced an investigation into the company for a suspected antimonopoly law violation. European shares reached their highest levels in six weeks on Monday, driven by mining and luxury stocks, following China's commitment to renewed economic stimulus. The STOXX 600 index SXXP rose 0.1%, marking its eighth consecutive session of gains.
In Asian markets, Chinese stocks and bonds soared following an announcement by China's Politburo that the country will adopt an "appropriately loose" monetary policy next year, replacing the "prudent" approach for the first time in approximately 14 years. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) increased by 0.88%. Meanwhile, South Korean stocks KOSPI dropped 2.8%, and the won currency weakened, despite authorities' pledge to stabilize financial markets.
In currencies, the dollar index DXY, which gauges the greenback against a group of currencies such as the yen and the euro, increased by 0.13% to 106.08, while the euro EURUSD fell 0.07% to $1.056. U.S. Treasury yields climbed as traders anticipated whether persistently high price pressures might disrupt expectations for a Federal Reserve rate cut next week. The yield on benchmark U.S. 10-year notes US10Y rose by 4.2 basis points.. EURUSD | USDJPY | GBPUSD | AUDUSD | NZDUSD
In commodities, geopolitical issues pushed up the prices of both oil and gold. Gold increased by 1.06% to $2,660.94 per ounce, while U.S. gold futures (GCc1) climbed 0.92% to $2,663.00 per ounce. China's efforts to enhance confidence also contributed to the rise in crude prices. Brent futures BRN1! went up 1.56% to $72.22 per barrel, and U.S. crude CL1! rose 1.89% to $68.47. 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