DOW JONES–Wall Street is likely to start the new trading week with surcharges. The future on the S&P 500 rises by 0.8 percent. Possible changes to US President-elect Donald Trump’s customs policy are causing movement. According to informed people, its advisors are examining import tariffs that would apply to all countries but would be limited to certain critical imports. This is reported by the Bloomberg news agency, citing a report in the Washington Post. Such a plan would mean a significant reduction to 10 percent from the 20 percent universal tariffs that Trump proposed during the campaign. Economists expect that a 20 percent tariff would drive up consumer prices and distort the patterns of global trade.
But participants also spoke of reluctance ahead of the US labor market report for December on Friday. The data had recently been volatile due to the impact of strikes and hurricanes. Investors are hoping that labor market data will point to solid economic growth, but not so strong that it will make it even more difficult for the Federal Reserve to further cut interest rates.
At its December meeting, the US Federal Reserve promised only two more interest rate cuts this year, which represents a significant reduction compared to the four interest rate cuts announced in September. The numerous speeches by Fed members scheduled for the week are therefore likely to strike a cautious tone when it comes to further interest rate cuts.
At the beginning of the week, the PMI Purchasing Managers’ Index for December is due to be published in its second reading and the industrial orders received for November – both after the opening of trading.
Dollar falls – oil prices rise slightly
The dollar is showing significant losses, the dollar index is losing 1.0 percent. However, traders are likely to exercise caution ahead of Friday’s key US jobs report. The dollar has risen sharply recently, so there is potential for a near-term pullback, “perhaps due to some profit-taking” ahead of the jobs data, says Pepperstone strategist Michael Brown. But he doesn’t want to read too much into the dollar’s current decline and remains positive about the greenback’s medium-term prospects.
Oil prices are rising moderately. The prices for Brent and WTI climb by up to 0.6 percent. Oil prices are off to a strong start to the year, supported by hopes of further Chinese stimulus and the prospect of higher demand due to cold weather, reports said.
Yields on the bond market are inconsistent after Friday’s significant gains.
Strong Foxconn numbers drive chip values
When it comes to individual stocks, the shares of Nvidia and Advanced Micro Devices (AMD) gained 2.6 and 3.1 percent, respectively, in the premarket. The trigger is strong business figures from the Taiwanese contract manufacturer Foxconn Technology for the fourth quarter. The company has achieved record sales, which can be attributed to strong demand for servers for AI technologies. In addition, significant sales growth is expected in the first quarter.
US Steel shares are up 3.3 percent. The US company and the Japanese company Nippon Steel filed a joint lawsuit on Monday to enable the sale of US Steel to Nippon Steel. US President Joe Biden banned the takeover for national security reasons.
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US bonds
Maturity Yield Bp to VT Yield VT +/-Bp YTD
2 years 4.27 -1.1 4.28 2.6
5 years 4.41 -0.8 4.41 2.7
7 years 4.51 +0.1 4.50 2.5
10 years 4.60 +0.2 4.60 3.0
30 years 4.82 +1.1 4.81 4.2
FOREX last +/- % Mon, 8:13 Fri, 17:30 % YTD
EUR/USD 1.0421 +1.2% 1.0315 1.0294 +0.6%
EUR/JPY 162.93 +0.5% 162.57 161.98 +0.0%
EUR/CHF 0.9398 +0.3% 0.9382 0.9365 +0.2%
EUR/GBP 0.8315 +0.2% 0.8288 0.8293 +0.5%
USD/JPY 156.38 -0.6% 157.62 157.36 -0.6%
GBP/USD 1.2533 +0.9% 1.2445 1.2413 +0.2%
USD/CNH (Offshore) 7.3190 -0.6% 7.3553 7.3615 -0.2%
Bitcoin
BTC/USD 99,229.75 +0.6% 99,336.10 98,178.30 +4.8%
CRUDE OIL most recently VT-Settlem. +/-% +/- USD% YTD
WTI/Nymex 74.30 73.96 +0.5% +0.34 +3.6%
Brent/ICE 76.98 76.51 +0.6% +0.47 +2.9%
GAS VT Settlem. +/- EUR
Dutch TTF 48.19 49.60 -2.8% -1.41 -1.8%
METALS last day previous +/- % +/- USD % YTD
Gold (spot) 2,638.73 2,640.23 -0.1% -1.50 +0.6%
Silver (spot) 30.20 29.62 +1.9% +0.58 +4.6%
Platinum (spot) 940.38 941.43 -0.1% -1.05 +3.7%
Copper future 4.13 4.05 +2.0% +0.08 +3.2%
YTD based on the previous day’s closing level
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DJG/DJN/ros/flf
(END) Dow Jones Newswires
January 06, 2025 08:45 ET (13:45 GMT)