- U.S. indices continue to gain, albeit in a minimally limited upward trend. The US500 gained 0.46%, the US100 0.4%, and the US200 as much as 1.6%. Affirm shares rallied 14% after cooperation with Walmart
- Bank of America Fund Managers Survey indicated that investors say 30-year US treasury and long duration tech will be the best performing if the Fed cuts rates in H1 2024, with 91% betting an end of Fed rate hikes cycle.
- Investors also most overweight equities relative to cash since January 2022 with the biggest overweight in bonds since March 2009, net 20% overweight bonds up one percentage point since November.
- Fed Barkin told that inflation is more stubborn than average Fed official thinks, but the US central bank is nicely positioned given the outlook for the economy. Fed Bostic expects inflation to continue to come down slowly and unevenly with 2 rate cuts projected in second half of 2024
- Moderate gains of 0.5% were seen in Europe today, on the wave of strong gains in Asia. The WIG index reached above 79,000 points today, while the WIG20 was near 2,400 points, gaining more than 0.8% at the close
- The event of the day was the Bank of Japan's monetary policy decision. However, the BoJ didn't change the parameters of its policy with what initially led to the weakness of the yen, but at the same time support for the Asian market. USDJPY gained about 1.5% at one point in the morning, but later the increase was halved. The dollar was one of the weaker currencies in the market today.
- The RBA Minutes were hawkish and showed that some bankers wanted a rate hike, but the consensus that developed led to a hold on interest rates
- Eurozone inflation remained at 2.4% y/y, in line with the original reading for November. On a monthly basis, however, it was a slightly larger decline at 0.6% m/m
- Canadian inflation remained unchanged at 3.1% y/y for November, with a drop to 2.9% y/y expected. USDCAD fell sharply after the data, which is linked to a possible push back of a potential rate cut next year
- NATGAS lost as much as 5% during today's session, but the loss was neutralized to 1% by the end of the session. U.S. production remains near record levels, while daily consumption is up to 10% lower than a year earlier
- Crude oil gained nearly 2% today (later reduced below 1.5%), on expectations that oil supplies by avoiding the Suez Canal will increase for 2-4 weeks
- Precious metals scored gains today against the continuation of the decline in yields (3.9% in the US for 10Y). Gold gained 0.6%, while Palladium gained as much as 3%
- After morning gains on Bitcoin, the crypto market began to fall with the Bitcoin price approaching the area of $42,000 again.
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