Treasuries slipped and gold fell from session highs on Monday, as markets pared some of the Friday moves that defied Federal Reserve Chair Jerome Powell’s reminder that policymakers are in no hurry to cut interest rates. Yields rose across tenors in Treasuries, with those of the benchmark 10-year trading around 4.25%. US government bonds had rallied Friday as swaps priced in a reduction by May, even after Powell said the central bank is ready to hike further if needed, while also noting that policy is “well into restrictive territory.” Meanwhile, gold slipped from earlier intraday highs, trading around $2,085.34 an ounce and still on track for a record close. Bitcoin climbed nearly 3% to the highest since April 2022, continuing its multi-month rise on expectations of new exchange-traded fund approvals in the US. Asian shares were mixed, with gains in Australian and Korean stocks, while Japanese equities fell. S&P 500 futures were steady. Hong Kong and mainland China stocks were on the back foot. Shares of distressed developer China Evergrande Group, however, surged as much as 22% after a Hong Kong court again postponed a decision on whether the world’s most-indebted property developer should be wound up.
Oil traded lower amid sustained skepticism that the latest supply cuts by OPEC+ will turn the market’s tide. This week, traders will be monitoring for clues to the health of the global economy with Australian growth, Chinese inflation and US non-farm payrolls data all due. The Reserve Bank of Australia is expected to sound hawkish as it keeps its rate on hold on Tuesday after governor Michele Bullock warned inflation is now homegrown. While the cooler-than-expected inflation will keep the RBA on hold, “sticky ‘homegrown’ services inflation will ensure a tightening bias is retained,” Tony Sycamore, an analyst at IG Group in Sydney, wrote in a note to clients. “A rate hike in February hinges on the outcome of the December quarter inflation due for release in late January.” US airline stocks will be in focus when Wall Street reopens Monday after Alaska Air Group Inc agreed to buy rival Hawaiian Holdings Inc.’s Hawaiian Airlines in a deal valued at $1.9 billion. Investors will also keep watch on geopolitical tensions in the Middle East. Israel has resumed its military operation in Gaza, a US warship was attacked in the Red Sea and Houthi rebels in Yemen said they had carried out operations against two Israeli ships.
Nikkei -0.60% Hang Seng -0.57% CSI -0.51% Shanghai -0.18% Shenzen -0.22%
Eur$ 1.0869 CNH 7.1421 CNY 7.1386 JPY 146.75 GBP 1.2675 CHF 0.8711 RUB 91.0267 TRY 28.9440 WTI$ 73.86 -0.82% Gold 2,076 +0.17% BTC 41,418 +4.25% ETH 2,250 +3%
S&P -0.18% Nasdaq -0.32% EuroStoxx +0.03% FTSE -0.15% Dax +0.14% SMI +0.05%
Macro :
- Bitcoin Hits $40,000 Level for the First Time Since May 2022
- Europe’s €460 Billion China Exposure Faces Early 2024 Test
- US Approves $2 Billion Sale of Military Devices to Australia
- US Approves $2 Billion Sale of Military Devices to Australia
- Stoxx Europe 600 Replaces 7 Companies (Adevinta, Cranswick, BCO Comercial Portugues, Swissquote ‘R’,Zealand Pharma, Vallourec and Tag Immobilien were added Ams-Osram, Energean, Nordic Semiconductor, Nel, Kindred Group, Genus and CNH Industrial were deleted)
Keep an eye on :
- AC FP : Saudi Arabia Buys 49% of Rocco Forte’s Luxury Hotel Chain: FT
- AIR FP : Airbus notched a single order this year for its worst-selling plane
- ALO FP : Worldline, Alstom May Exit CAC 40 in Review, Les Echos Says
- BA US : Boeing Cut From US Air Force ‘Doomsday Plane’ Competition: Rtrs
- CON GY : Continental Under Pressure to Find EV Path After Stumbles
- DHL GY : Teamsters Union Authorizes Strike at DHL Cincinnati Hub
- ELI BB : Elia Group to Buy 35.1% Stake in energyRe Giga
- 3333 HK : Evergrande Faces Final Chance to Avoid Liquidation by HK Court
- 3333 HK : Evergrande Winding-up Hearing in Hong Kong Adjourned to Jan. 29
- FTCH US : Point72 Reports 5.3% Passive Stake in Farfetch
- FLTR LN : Wolters Kluwer to Replace Flutter Entertainment on Euro Stoxx 50
- GAZP RM : Russian Gas Glut Shows Austria Still in Kremlin’s Energy Orbit
- HHFA GY : Tokyo to Launch Hydrogen Trading Market, Governor Says: Asahi
- HYL BB : Hyloris Says Partner Padagis Got US FDA Approval for Podofilox
- NOVOB DC : $11 Billion Obesity Market in 2024? Novo to Lead as Lilly Debuts
- PHNX LN : Phoenix Group Reports IPO on Abu Dhabi Securities Exchange
- RIO LN : Rio Tinto Approves New Solar Farm to Power Amrun Bauxite Ops
- ROG SW : Roche to Buy Carmot Therapeutics for Up to $3.1B
- RWE GY : RWE CEO Says Europe Still Vulnerable to Gas Supply Shocks: FT
- LOCAL FP : Solocal Seeks Bondholder Approval to Postpone Coupon Payment
- STJ LN : Somerset Assets Plunge as St. James’s Place Cuts Ties, FT Says
- SHLN SW : Swiss Life Says Matthias Aellig to Succeed Patrick Frost as CEO
- TKO FP : Tikehau to Invest in Japan Energy Transition, Cybersecurity
- UBSG SW : UBS’s Ermotti to Find Potential Successor Within Three Years
- UBSG SW : UBS Sells Credit Suisse Jet Used by Ex-Chair Horta-Osorio: FT
- VWS DC : Vestas Agrees to Expand DTEK’s Onshore Wind Farm in Ukraine
- WEN US : Activist Blackwells Said to Push for Wendy’s Board Changes
- WKL NA : Wolters Kluwer to Replace Flutter Entertainment on Euro Stoxx 50
- WLN FP : Worldline, Alstom May Exit CAC 40 in Review, Les Echos Says