Global Economic Daily - 18/12/2023
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Closing Commentary
Quote of the Day: The whole point of getting things done is knowing what to leave undone. – Oswald Chambers
Equities: The stocks were mixed again to end the week. The?Dow Jones Industrial Average?closed higher Friday after a whipsaw session, where it marked a fresh intraday record, and the tech-heavy Nasdaq-100 set a record close. All three major averages scored their seventh-straight winning week. The?Dow?closed up 56 points at 37,305.16. The?S&P 500?slipped 36 points to 4,719.19 while the?Nasdaq 100?closed up 85.62 points at 16,623.45.?The Nasdaq-100?ended Friday at 16,623.45, topping a record close dating back to November 2021. As of Friday, the Dow is higher on the month by 3.8%. The S&P 500 is up by 3.3%, while the Nasdaq Composite has climbed 4.1% so far in December. The S&P 500 marked its longest weekly winning streak since 2017, and could still soon join the Dow with its own all-time high. The broad market index is less than 2% away from that mark, which was set in January 2022. Wall Street rallied this week after the Federal Reserve on Wednesday admitted that its efforts to tamp down inflation are taking hold, and indicated three interest rate cuts are coming in 2024, buoying investor sentiment. The November retail sales data that came in stronger than expected on Thursday, following this week’s cooler inflation readings, added to hopes the Federal Reserve could navigate a soft landing. That said, New York Fed President John Williams?pushed back?on the euphoria around the central bank easing rates next year. “We aren’t really talking about rate cuts right now”. TECHNICAL OUTLOOK - The Dow and the S&P remain above the 14, 21 day moving average.
Crude Oil: Oil was down today. Brent and U.S. crude futures finished at a small loss following a see-saw session, in which prices fell more than $1 a barrel at one point on Friday, as traders tried to reconcile mixed signals for oil demand in the coming year. The market tumbled earlier in the session after a New York Federal Reserve Bank manufacturing survey showed a third month of declines in new orders, which could be a sign of weaker demand for oil in the coming year. World oil consumption will?rise?by 1.1 million barrels per day in 2024, the IEA said in a monthly report. While that is a 130,000-bpd increase from its previous forecast, the estimate is less than half of the Organization of the OPEC demand forecast of 2.25 million bpd. OPEC and its allies led by Russia, in late November?agreed?on voluntary cuts of about 2.2 million bpd lasting throughout the first quarter. TECHNICAL OUTLOOK - The crude remains below the 14, 21 day moving average.
Metals: Gold?and?silver prices?are higher in early U.S. trading Friday. The gold and silver market bulls are still glowing in the aftermath of Wednesday's surprisingly dovish U.S. monetary policy stance by the Federal Reserve. The near-term technical postures for gold and silver have also become more bullish this week, inviting the chart-based speculators to the long sides. Technically, the gold futures bulls have the firm overall near-term technical advantage and have regained strength. Prices are in a nine-week-old uptrend on the daily bar chart. Bulls' next upside price objective is to produce a close in March futures above solid resistance at $2,100.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $2,000.00. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing March futures prices above solid technical resistance at $26.00. The next downside price objective for the bears is closing prices below solid support at this week's low of $22.785. TECHNICAL OUTLOOK – Gold and silver are both above the 14, 21 day moving average. ?
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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.
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