The decline in global bond yields supports stock indices
According to data compiled by Bloomberg, trading volume in US exchange-traded funds on Tuesday was 35% below the 30-day average. That suggests investor activity is waning ahead of the New Year.
German 10-year bond yields fell to a one-year low. German bonds have been rising since late October as weak Eurozone economic data and slowing inflation suggest the European Central Bank won’t keep rates high for long.
Crude oil prices were under technical selling pressure on Wednesday as funds closed their crude oil positions ahead of the year-end.
Asian markets rallied yesterday. Japan’s Nikkei 225 (JP225) gained 1.13% over yesterday, China’s FTSE China A50 (CHA50) added 0.14%, Hong Kong’s Hang Seng (HK50) increased by 1.74%, and Australia’s ASX 200 (AU200) was positive by 0.79%.
Some BOJ officials called for a more in-depth discussion on the future exit from ultra-loose monetary policy as the economy moves towards the Bank’s price target. While the board agreed to maintain the massive stimulus for the time being, the views of the nine representatives were split between those who are cautious about raising interest rates and those who believe it is necessary to start preparing for a future exit.
Factory output in Japan fell in November, dragged down by a drop in auto production and clouding the outlook for the export-dependent economy. Automobile production, the mainstay of industrial output, fell by 2.5% in November. Output of electrical, information and communication electronics equipment also fell by 3.5% due to weak semiconductor demand.
S&P 500 (US500) 4,781.62 +6.87 (+0.14%)
Dow Jones (US30) 37,657.04 +111.71 (+0.30%)
DAX (DE40) 16,742.07 +35.89 (+0.21%)
FTSE 100 (UK100) 7,724.95 +27.44 (+0.36%)
USD Index 100.95 −0.52 (−0.51%)
News feed for: 2023.12.28
- Japan Industrial Production (m/m) at 01:50 (GMT+2);
- Japan Retail Sales (m/m) at 01:50 (GMT+2);
- US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
- US Pending Home Sales (m/m) at 17:00 (GMT+2);
- US Natural Gas Storage (w/w) at 17:30 (GMT+2);
- US Crude Oil Inventories (w/w) at 18:00 (GMT+2).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
