2024-01-03 13:50:20
Most analysts believe that the minutes of the Federal Reserve’s December meeting released tonight will most likely pour cold water on investors.
On Wednesday, January 3, bets on global interest rate cuts weakened, and overseas stocks and bonds got off to a bad start. U.S. Treasury and U.S. stock futures fell further, with Nasdaq futures falling more than 0.6% and the 10-year U.S. bond yield approaching 4%.
Data on U.S. manufacturing, job openings and minutes from the Federal Reserve’s FOMC policy meeting are due to be released as traders await the data to better understand whether pricing for a steep rate cut is justified. Swap pricing shows that the Fed will cut interest rates by regarding 145 basis points during the year.
Most analysts believe that the minutes of the Federal Reserve’s December meeting will most likely pour cold water on investors. Karl Steiner, head of analysis at Skandinaviska Enskilda Banken AB, does not expect the discussion in the meeting minutes to support such a significant rate cut, and the market will pay close attention to any statement regarding a rate cut, what factors will trigger a rate cut, and how soon the rate cut will come.
Gold falls below 2050 mark
Spot gold fell below the $2,050/ounce mark and was quoted at $2,040/ounce, down regarding 0.9% on the day.
European and American stock markets fell
The decline in European stocks expanded, with the German DAX index falling by 1% during the day, the French CAC40 index falling by 1.5%, the European Stoxx 50 index falling by more than 1%, and the British FTSE 100 index falling by 0.65%.
U.S. stock futures fell, with Nasdaq 100 futures falling by 0.6%, Dow futures falling by nearly 0.3%, and S&P 500 futures falling by nearly 0.4%. Nvidia fell more than 1.6% before the market opened as investors continued to retreat from technology stocks.
U.S. debt continues to correct
U.S. Treasuries fell for the fourth consecutive day, with the yield on the 10-year U.S. Treasury note rising to 3.98%, approaching the 4% mark, the highest level since December 14, reflecting investors’ concerns ahead of the release of new economic data and Federal Reserve meeting minutes. cautious attitude. The U.S. dollar strengthened for the fourth consecutive day, setting a record for its longest strength since November.
Long-term British bonds have also been greatly affected, with the yield on 30-year British bonds rising by 14 basis points, higher than similar bonds in the United States and Germany. Investors are selling long-end gilts to free up cash before Britain sells new debt with higher interest rates.
International oil prices rise in the short term
WTI crude oil rose by US$0.51/barrel in 5 minutes to US$70.92/barrel; Brent crude oil rose by US$0.52/barrel in 5 minutes to US$76.59/barrel, rising to an intraday high.
In terms of news, it was previously reported that the Houthi armed forces in Yemen claimed to have successfully attacked a container ship bound for Israel. In addition, there is news that Libya’s largest oil field has begun to shut down due to personnel protests.
Bitcoin plunges 7%
Cryptocurrencies generally fell, with Bitcoin once falling by more than 7% and Ethereum once falling by 8%. The day before, Bitcoin had exceeded $45,000, setting a new high in 21 months. Institutions said that short-term Bitcoin volatility will intensify.
Risk warning and disclaimer
Market risk, the investment need to be cautious. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained in this article are appropriate to their particular circumstances. Invest accordingly and do so at your own risk.
1704309930
#eve #release #Fed #minutes #European #American #stock #markets #fell #U.S #bonds #continued #correct #gold #fell #mark #oil #prices #rose #short #term
