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Markets Update: Won approached a near 2-year low due to political turmoil in South Korea. The Dollar and Euro remain stable ahead of the French no-confidence vote. European stocks rise; French bonds remain steady. Wall Street shares climb on robust corporate earnings.
Global Markets Roundup: 4 December 2024
FESX1! | Z1! | NI225 | NQ1! | ES1! | EURUSD | USDJPY | DXY | GOLD | CL1! | ZC1! | ZS1! HG1!
Global stocks showed mixed results, and the euro remained stable on Wednesday as markets absorbed political unrest in South Korea, where martial law was briefly imposed and then lifted, and in France, where a no-confidence vote threatened to overthrow the government. Major indices on Wall Street rose, with traders seemingly more interested in the possibility of lower domestic interest rates and robust third-quarter earnings from companies like enterprise cloud firm Salesforce CRM and pharmaceutical company Eli Lilly LLY.
The S&P 500 SPX increased by 0.38% to 6,072, and the Nasdaq Composite IXIC climbed approximately 1% to 19,670 — both reaching record highs — while the Dow Jones Industrial Average DJI went up by 0.37% to 44,871. U.S. Treasury yields also increased after St. In South Korea, Asia's fourth-largest economy, legislators urged President Yoon Suk Yeol to resign or face impeachment following his declaration of martial law late on Tuesday, which he retracted hours later. This crisis caused South Korea's benchmark KOSPI index KOSPI to drop 1.4%, bringing its losses for the year to over 7% and making it the worst-performing major stock market in Asia this year. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), which includes Samsung Electronics 005930 as one of its leading constituents, decreased by 0.15%. Most Asian markets, apart from South Korea, experienced gains. At the same time in Europe, stocks SXXP rose approximately 0.45%, and the euro was trading close to a two-year low before the no-confidence vote in France.
In the foreign exchange markets, the dollar index DXY, which compares the U.S. currency to six other currencies, remained stable at 106.21. The euro, last recorded at $1.0530 EURUSD, has decreased by 5% over the past three months as investors anticipated tariff-focused policies from the incoming administration of President-elect Donald Trump. The won USDKRW, supported by suspected central bank intervention, stabilized but stayed near the two-year low against the dollar reached late on Tuesday. South Korea's finance ministry announced its readiness to inject unlimited liquidity into financial markets. Reports indicated that the financial regulator was prepared to allocate 10 trillion won ($7.1 billion) to a stock market stabilization fund. EURUSD | USDJPY | AUDUSD | DXY | NZDUSD
In commodities, Oil prices steadied as market players weighed geopolitical tensions and the potential extension of supply cuts by OPEC+ against falling demand. U.S. crude CL1! fell by 0.41% to $69.65 a barrel, while Brent BRN1! declined to $73.36 per barrel, marking a 0.34% drop for the day. Comex Gold for December delivery increased by $9.10 per troy ounce, or 0.34%, reaching $2653.80 today.. BRN1! | CL1! | GOLD | HG1!
In agricultural commodities, Arabica coffee futures KC2! increased by 8.2 cents, or 2.8%, to settle at $3.037 per lb, after dropping about 7% over the last two sessions. The local federation stated that Colombia's coffee production might reach 13.6 million bags by the end of 2024, up from 11.3 million bags in 2023. Robusta coffee RC2! climbed 3.2% to $4,751 per metric ton, following a decline of around 15% in the previous two sessions. These contracts also reached their highest level since 1977 on Friday. New York cocoa CC2! rose $363, or 4%, to $9,401 per ton, after achieving a five-month high of $9,569 on Monday. London cocoa futures on ICE C2! increased by 2.7% to 7,574 pounds per ton, following a five-month peak of 7,839 on Monday. March raw sugar SB1! decreased by 0.11 cent, or 0.5%, to 21.26 cents per lb, after reaching its lowest level in more than two months at 20.70 on Monday. March white sugar SF1! dropped 0.5% to $550.40 per ton. CBOT January soybeans (SF25) decreased by 8 cents to $9.83-3/4 per bushel, with futures from September 2025 through November 2026 hitting new contract lows. March corn futures (CH25) dropped 2-1/4 cents to $4.30 per bushel. CBOT March wheat (WH25) increased by 3/4 cent to $5.48-1/4 per bushel after reaching a contract low of $5.40-1/4. All other contracts, except for spot December, also reached new lows. 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