Posted at 04 January 2024 / Categories Market Roundups
Market Roundup
•U.S. non-farm payrolls data due on Friday
•US jobless claims fall, December private payrolls rise
•Palladium sheds 3%, down for eighth straight session
•Canada Dec Reserve Assets Total 118.3B,115.4B previous
•US Dec ADP Nonfarm Employment Change 164K,115K forecast, 103K previous
•US Initial Jobless Claims 207.75K,216K forecast ,218K previous
•US Continuing Jobless Claims 1,855K, 1,883K forecast ,1,875K previous
•US Jobless Claims 4-Week Avg. 207.75K,212.00K previous
•US Dec Services PMI 51.4,51.3 forecast , 50.8 previous
•US S&P Global Composite PMI 50.9,51.0 forecast , 50.7 previous
•US Cushing Crude Oil Inventories 0.706M,1.508M previous
•US Crude Oil Inventories -5.503M,-3.200M forecast ,-7.114M previous
Looking Ahead Economic Data(GMT)
•00:30 Japan Dec Services PMI 52.0 forecast ,52.0 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Thursday as investors assessed the latest economic data across the continent. German inflation rose in line with expectations in December due to base effects, while French consumer prices also rose in December, matching expectations. The euro rose 0.25% to $1.0950, having fallen to a more than two-week low on Wednesday, after France and other European countries reported inflation figuresa separate reading showed contraction in euro zone business activity continuing at the end of 2023.Focus now shift to a preliminary inflation estimate of the broader euro zone due on Friday. Immediate resistance can be seen at 1.0989(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0911(38.2%fib), a break below could take the pair towards 1.0839 (50%fib).
GBP/USD: Sterling strengthened against dollar on Thursday after data showed services companies in Britain saw stronger growth in December. Britain's services sector increased at a faster rate in December than first anticipated, and confidence reached a seven-month high. According to survey this is good news for Prime Minister Rishi Sunak, who is anticipated to call an election later this year. The S&P Global/CIPS UK Services Purchasing Managers' Index (PMI), which was released on Thursday, increased from 50.9 in November and a preliminary reading of 52.7 to 53.4 in December, its highest level since June. Sterling was last up 0.23% against the dollar at $1.2690.It rose as much as 0.5% to $1.2728 after the data release, having fallen 0.87% on Tuesday to a three-week low, in its biggest one-day drop since mid-October. Immediate resistance can be seen at 1.2734(23.6%fib), an upside break can trigger rise towards 1.2778(Higher BB).On the downside, immediate support is seen at 1.2580 (38.2%fib), a break below could take the pair towards 1.2493(50%fib).
USD/CAD: The Canadian dollar was little changed versus the US dollar on Thursday, giving up earlier gains as data indicating that Canada's service sector declined for the seventh month in a row added to concerns about a future recession. According to S&P Global Canada services PMI data, activity in Canada's service sector declined in December as rising borrowing rates weighed on the housing market.The headline business activity index rose to 44.6 in December from 44.5 in November, a near three-and-a-half-year low. Canada's employment report for December is due on Friday, could offer further clues on the state of the economy. The loonie was trading nearly unchanged at 1.3355 to the greenback, after moving in a range of 1.3318 to 1.3365. Immediate resistance can be seen at 1.3384 (38.2% fib), an upside break can trigger rise towards 1.3494 (50% fib).On the downside, immediate support is seen at 1.3318(Daily low), a break below could take the pair towards 1.3240(23.6% fib).
USD/JPY: The dollar strengthened against the yen on Thursday as greenback was supported by robust U.S. labor market data surpassing expectations. The US dollar rose on news that private firms in the United States employed more people than expected in December. According to the ADP National Employment Report, private payrolls climbed by 164,000 jobs last month, biggest monthly rise since August. Polled economists, who projected a 115,000 increase in private payrolls . A crucial nonfarm payrolls report due on Friday could guide the outlook on Fed policy easing. Strong resistance can be seen at 144.63(50%fib),an upside break can trigger rise towards 145.79(61.8%fib).On the downside, immediate support is seen 142.98(23.6%fib)a break below could take the pair towards 141.92(Jan 3rd low).
Equities Recap
European shares recouped some losses on Thursday after hitting three-week lows in the previous session, with banks and utilities leading the charge as investors assessed the latest economic data across the continent.
UK's benchmark FTSE 100 closed up by 0.53 percent, Germany's Dax ended up by 0.48 percent, France’s CAC finished the day up by 0. 52 percent.
The S&P 500 and Nasdaq Composite (.IXIC) closed lower on Thursday, extending their losing streak that kicked off 2024, although the Dow Jones Industrial (.DJI) eked out a win on the back of financial stocks and strong jobs data.
Dow Jones closed up by 0.03 percent, S&P 500 ended up by 0.34percent, Nasdaq finished the day up by 0.56 percent.
Commodities Recap
Gold held steady on Thursday after four sessions of decline as investors braced for the U.S. non-farm payrolls data that could influence the Federal Reserve's interest-rate path, while palladium prices slipped on a dim long-term demand outlook.
Spot gold edged up 0.2%, to $2,044.39 per ounce by 2:50 p.m. ET (1950 GMT), a day after hitting its lowest since Dec. 21. U.S. gold futures settled up 0.4%, at $2,050.00.
Oil settled lower on Thursday in a choppy see-saw session, as massive weekly gasoline and distillate stock builds overshadowed a larger-than-expected crude stock draw.
Brent crude settled down 66 cents, or 0.8%, to $77.59. During the session it both rose and fell over $1. U.S. West Texas Intermediate crude futures settled down 51 cents, or 0.7%, to $72.19.