Key Takeaways:
Dollar advanced, euro edged lower
Dollar index is on upward trajectory, near two-year highs
U.S. Congress passed spending legislation to avoid government shutdown
New orders for U.S.-manufactured capital goods surged in November- Consumer confidence index dropped this month
Traders pricing in 33 basis points of rate cuts next year
Bank of Japan standing holding rates steady, reducing odds of Japanese rate hike
Bank of England kept rates on hold, with split vote bigger than anticipated- U.S. markets closed in the green on Friday, recovering from midweek losses
- U.S. major indexes advanced, led by real estate and small-cap stocks
- Markets ended the week lower despite the Friday gains
- U.S. economic data showed softer inflation and increased consumer sentiment in December
- All sectors of the S&P 500 ended positively, with utilities, real estate, and information technology leading the gains
- Dow futures were down, S&P 500 futures were up, and Nasdaq 100 futures gained at 6:00 AM ET
ECB’s Lagarde said euro zone close to reaching inflation goal, may cut rates further if needed
Dollar strengthened against Japanese yen, yen near weak levels- Sterling weakened after Bank of England kept rates on hold
Market moves dictated by recent global central bank meetings
Spending legislation passed by U.S. Congress, avoiding government shutdown
Traders are pricing in 38 basis points of rate cuts next year, with first easing in 2025 pushed to June- Euro slipped following Christine Lagarde’s comments on inflation reaching ECB’s target
- UK economy failed to grow in the third quarter, indicating an economic slowdown
- USD/JPY rose amid dovish signals from the Bank of Japan
USD/CNY hit a one-year high as traders worry about China’s economic outlook
Market Trends and Financial Developments
The recent financial landscape has seen a series of notable events impacting various currencies and markets worldwide. Here are some key takeaways:
Dollar and Euro Movements
- Dollar advanced, while the euro edged lower due to various economic factors.
- The Dollar index is trending upward, reaching near two-year highs.
- The dollar strengthened against the Japanese yen, while the yen remained at weak levels.
- Euro slipped following comments by ECB’s Lagarde on reaching inflation goals.
Central Bank Actions
- Bank of Japan maintained rates steady, diminishing chances of a Japanese rate hike.
- Bank of England kept rates unchanged, leading to a weaker sterling.
- ECB’s Lagarde indicated possible rate cuts in the eurozone if needed.
US Market Performance
- U.S. Congress passed spending legislation, averting a government shutdown.
- U.S. markets closed positively, with major indexes advancing, led by real estate and small-cap stocks.
- Consumer confidence dropped, while new orders for U.S. capital goods surged in November.
- Economic data showed softer inflation and increased consumer sentiment in the US.
Global Market Dynamics
- Recent global central bank meetings influenced market moves and traders’ expectations.
- USD/CNY hit a one-year high amid concerns about China’s economic outlook.