Global Economic Daily - 1/2/2025
Straits Financial Group
Leading Asian Derivatives Brokerage Providing Bespoke Solutions to Global Clients
NEWS AND MARKET COMMENTARY
Global Equities
Global Fixed Income
Currencies
Energy
Metals
Global Politics/News
领英推荐
Relevant Government Reports
Financial
Closing Commentary
Quote of the Day: And now we welcome the new year. Full of things that have never been. – Rainer Maria Rilke
Equities: Stocks closed lower on Tuesday as investors wrapped up another booming year that hoisted the?S&P 500?to its second consecutive annual gain exceeding 20%, spurred by enthusiasm for rate cuts, economic strength and artificial intelligence. The broad market index closed 25.31 points lower at 5,881.63, while the?Nasdaq 100?dipped 184.92 points to 21,012.17 on 2024′s final day of trading. The?Dow Jones Industrial Average?slipped just or 29.51 points, lower to 42,544.22. The S&P 500 surged 23.31% in 2024, building on a gain of 24.2% from last year. The two-year gain of 53% is the best since the nearly 66% rally in 1997 and 1998. Meanwhile, the Dow added 12.88% in 2024, while the Nasdaq has outperformed with a gain of 28.64%. Developments in Washington, D.C., helped fuel the rally in the second half of the year. The Federal Reserve has cut its benchmark interest rate by a full percentage point since September, bolstering confidence that the U.S. economy can sustain its recent growth. Stocks also?rallied sharply?following President-elect Donald Trump’s win in November, as traders cheered the prospect of lower taxes and a looser regulatory approach under a Republican administration. Meanwhile, bitcoin has performed even better than the stock market, up 119% for the year. Notably, the cryptocurrency?topped $100,000?for the first time this year. In the fourth quarter, the Nasdaq and S&P gained 6.2% and 2.1%, respectively, for a fifth consecutive positive quarter for the first time since 2021. The Dow is up a mere 0.5% during the same period for its fourth positive quarter in five. Despite the strong year-to-date performance, Wall Street struggled in December’s final days, with investors taking profits in some of 2024′s biggest winners and fears mounting over rising rates into year-end. The Dow ended the month down 5.3%. The S&P fell 2.5%, while the Nasdaq grinded out a gain of 0.5%. Investors were hoping for a Santa Claus rally, which occurs when the market rises during each of the five final trading days of a calendar year and the first two trading days of January. Instead, the S&P 500 ended the year with four-straight down days for the first time since 1966. Apple and Nvidia both fell on Friday for their third negative session in four. The market is closed on Wednesday for New Year’s Day. TECHNICAL OUTLOOK – The Dow and S&P are now both below the 14, 21 day moving average.
Metals: Gold prices are solidly higher and silver slightly lower in midday U.S. trading Tuesday. On this last trading day of the month, of the quarter and of the year, position evening is featured in many markets, including precious metals. Traders and investors are also awaiting a fresh fundamental spark to drive the markets. The New Year holiday on Wednesday sees most markets worldwide closed. The key outside markets today see the U.S. dollar index higher. Nymex crude oil futures prices are firmer and trading around $71.75 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.6%. Technically, February gold futures bulls and bears are on a level overall near-term technical playing field. Bulls’ next upside price objective is to produce a close above solid resistance at $2,700.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the November low of $2,565.00. March silver futures bears have the overall near-term technical advantage. A nine-week-old downtrend is in place on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $31.00. The next downside price objective for the bears is closing prices below solid support at the August low of $27.39. TECHNICAL OUTLOOK – Gold and sliver are both now below the 14, 21 day moving average.
?
DISCLAIMER: The Information and data contained herein was obtained from sources deemed reliable. The accuracy and completeness are not guaranteed
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.