Except for US equities, with the Nasdaq retreating by 0.86% to close at 20,846 and the S&P 500 down 0.38% at 5,998. There is a prevailing sense of topishness as we approach year-end. Notably, 2024 has been a standout year so far, with US equities gaining over 20%. A pullback could provide an opportunity to enter 2025 from a more favorable position. Yesterday brought a plethora of macroeconomic data: personal consumption rose less than anticipated, durable goods orders disappointed, continuing claims exceeded expectations, the Chicago PMI showed significant weakness, and Core PCE increased more than expected. Overall, these data points suggest a softening trend as rates continue to fall, increasing the probability of a 25 basis point cut in December. The collapse in yields this week has reversed the post-election spike, with the 10-year yield dropping from 4.50% to 4.26%. The DXY stands at 106.08, with the Yen trading in the 150 range and the Euro at 1.055. France is making headlines as concerns grow that its budget may not pass; French yields are now trading at their widest spread to German yields since the EU financial crisis in 2012.
In Asia, markets had a strong session and appear to have found a bottom following Tuesday’s open after Trump’s tariff news, with the Hang Seng Index rising by 800 points to approximately 19,700.
Cryptocurrencies are also bouncing back, with Ether gaining ground on Bitcoin, trading at $3,700 compared to Bitcoin’s $94,000. There is potential for Ether to continue its upward momentum, facing initial resistance around $4,100 and then $5,000—could this happen before year-end?