Moving markets: Five things shaping the FTSE 100 today
Moving Markets Today: Asian Equities Mixed, Apple at Eight-Week Low, Oil Prices Rally, Gold Set for Weekly Drop, All Eyes on Eurozone CPI and U.S. NFP Figures
Major U.S. indices, including the S&P and Nasdaq, face a three-week decline, while Dow gains traction from financials. Asian markets waver, possibly ending a nine-week global winning streak. Gold’s weekly decline is imminent due to reduced expectations of interest rate cuts strengthening the dollar. Apple confronts its second rating downgrade, causing an eight-week low in shares. Investors keenly await Friday’s non-farm payrolls report for insights into the Federal Reserve’s interest rate policy. Here are five key takeaways for your day.
Japan’s Service Sector Grows in Dec on Strong New Demand
Japan’s service sector saw faster expansion in December due to strong demand and increased confidence, with the final au Jibun Bank Service PMI rising to 51.5 from November’s 50.8. Although slightly below the initial reading of 52.0, it stayed above the 50.0 expansion threshold. Despite this positive development, the overall annual headline figure was the second lowest for the year, trailing behind earlier 2023 figures.
India Set to Announce Higher 2023/24 GDP Growth; China Bonds Rally on Stimulus Hopes
India is anticipated to announce a higher economic growth forecast of around 7% for the fiscal year ending in March 2024, surpassing earlier government estimates, according to Reuters. The National Statistical Office is scheduled to release the initial GDP estimates on Friday at 1200 GMT. These early projections undergo six subsequent revisions.
China’s government bonds surged as 10-year yields hit a nearly four-year low, driven by rising expectations of additional economic stimulus. The benchmark 10-year government bond yields fell to 2.525%, the lowest since April 2020, with an inverse relation to bond prices.
Oil Prices Rise on Rising Middle East Tensions
Oil prices rose modestly on Friday as Federal Reserve meeting minutes indicated controlled inflation. The upcoming visit of U.S. Secretary of State Antony Blinken to the Middle East, aiming to de-escalate the Israel-Gaza conflict, also boosted confidence. Brent crude futures increased by 0.5% to $77.96 per barrel, and U.S. West Texas Intermediate crude futures rose 0.7% to $72.69.
Today’s Highlights: Eurozone Flash Inflation and US Nonfarm Payrolls Data in Focus
The Eurozone is set to release its flash inflation figures at 10:00 GMT, followed by the crucial US Nonfarm Payrolls (NFP) data in the early North American session. This data will play a pivotal role in shaping market expectations regarding potential policy decisions by both the European Central Bank (ECB) and the Federal Reserve (Fed).
Global Markets Poised to Break 9-Week Winning Streak; Apple Plummets to Eight-Week Low
The S&P 500 dropped 0.34% to 4,688.68, the Nasdaq fell 0.56% to 14,510.3, and the Dow Jones edged up 0.03% to 37,440.34. Tech giants like Amazon and Alphabet saw declines of 2.6% and 1.8%. Apple shares slid 1.3% after Piper Sandler’s “neutral” rating, following Barclays’ downgrade. Asian markets had a mixed start amid considerations of the US labour market and the Fed’s interest rate policies. Hong Kong’s Hang Seng index opened 0.1% lower, China’s CSI 300 added 0.3%, Japan’s Topix rose 0.6%, and South Korea’s Kospi was down 0.1%. The U.S. dollar index held near 102.39, with a weekly gain of 0.97%, and the 10-year Treasury yield neared 4% at 3.99%, up 13 basis points for the week. Gold edged up to $2,047 per ounce, but its three-week winning streak in 2024 was set to end with a 0.76% decline.