Global Economic Daily - 19/12/2023
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Quote of the Day: Few men have virtue to withstand the highest bidder. – George Washington
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Equities: The stocks were up to start the week. The S&P 500 rose Monday as the market maintained the momentum seen during its seven-week winning streak. The?Dow Jones Industrial Average?was little changed, gaining just 0.86 points to 37,306.02. The?S&P 500?climbed 21.37 points to 4,740.56. The tech-heavy?Nasdaq 100?advanced 106.35 points to 16,729.80. The S&P 500 is now 1.2% away from its all-time closing high at 4,796.56 that was reached in January 2022. The S&P 500 is coming off its longest string of weekly gains since 2017. The broad market index is up by 3.8% for the month. In December, the Dow is higher by 3.8%, and the Nasdaq has gained 4.8%.?The Dow also posted an intraday record on Friday, while the Nasdaq 100 registered a new closing high. Investor sentiment took a positive turn last week after the Federal Reserve indicated three short-term interest rate cuts are expected in 2024 amid cooling inflation.?Treasury yields dropped, with the 10-year Treasury yield falling below the 4% level. TECHNICAL OUTLOOK - The Dow and the S&P remain above the 14, 21 day moving average.
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Crude Oil: Oil rose nearly 2% on Monday as investors worried about disruptions to maritime trade and supply costs after the Iran-aligned Yemeni Houthi militant group attacked ships in the Red Sea. A?Norwegian-owned vessel?was attacked in the Red Sea on Monday and oil major BP said it had temporarily paused all transit through the water. Other?shipping firms?said over the weekend that they would avoid the route. About 15% of world shipping traffic transits via the Suez Canal, the shortest shipping route between Europe and Asia. London's marine insurance market widened the area in the Red Sea it deemed high risk on Monday, adding to premiums ships pay. U.S. Defense Secretary Lloyd Austin?said?Washington was building a coalition to address the Houthi threat and said defence ministers from the region and beyond would hold virtual talks on the issue on Tuesday. Also adding support, Russia said on Sunday it would?deepen oil export cuts?in December by potentially 50,000 barrels per day or more, earlier than promised, as the world's biggest exporters try to support global oil prices. Russia announced the deeper export cuts after it suspended about two-thirds of loadings of its main export grade Urals crude from ports due to a storm and scheduled maintenance on Friday. TECHNICAL OUTLOOK - The crude remains below the 14, 21 day moving average.
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