Daily Market Insights - January 5, 2024

DAILY MARKET NEWSLETTER

January 5, 2024

MARKET WRAP

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Thursday, the Nasdaq 100 declined a further 86 points (-0.53%) to 16,282, extending its losing streak to a fifth session, the longest one since October 2022. The S&P 500 also closed 16 points lower (-0.34%) at 4,688, while the Dow Jones Industrial Average edged up 10 points (+0.03%) to 37,440.

• The ADP jobs report showed that the U.S. economy added 164,000 private jobs in December (vs +99,000 expected).

• The latest number of initial jobless claims declined to 202,000 (vs 225,000 expected).

Investors are expecting the U.S. official jobs report for December, to be released later today, to show a slower addition of non-farm payrolls of 150,000 and a higher jobless rate of 3.9%.

Meanwhile, the U.S. 10-year Treasury yield gained 8.6 basis points to 3.993%.

• Energy (-1.63%), retailing (-1.62%), and technology hardware & equipment (-1.15%) stock sectors lost the most during the session.

• Microsoft (MSFT) declined 0.72%, Apple (AAPL) fell 1.23%, Alphabet (GOOGL) dropped 1.82%, and Amazon.com (AMZN) lost 2.63%.

• Nvidia (NVDA) gained 0.90%, while ON Semiconductor (ON) slid 3.92% and NXP Semiconductors (NXPI) was down 3.85%.

• Mobileye Global (MBLY) plunged 24.55%, as the self-driving system developer gave a lower-than-expected full-year revenue forecast.

• Peloton Interactive (PTON) jumped 13.94%. The interactive fitness platform announced a collaboration with TikTok to offer personalized social contents.

European stocks closed higher, with the DAX 40 gaining 0.48%, the CAC 40 up 0.52%, and the FTSE 100 up 0.53%.

• U.S. WTI crude-oil futures eased $0.31 to $72.39 a barrel.

• Gold price added $2 to $2,043 an ounce.

MARKET WRAP: FOREX

The U.S. dollar index was little changed at 102.39.

• EUR/USD climbed 25 pips to 1.0946. Inflation in Germany increased to 3.7% on year in December (as expected), and that in France also ticked up to 3.7% (vs 3.8% expected).

• USD/JPY jumped 136 pips (+0.95%) to 144.65.

• GBP/USD rose 18 pips to 1.2680, while AUD/USD dipped 25 pips to 0.6704.

• USD/CHF added 11 pips (+0.13%) to 0.8501.

• USD/CAD was little changed at 1.3350.

• Bitcoin regained upward momentum, as it surpassed both $43,000 and $44,000 levels. Investors kept expecting approvals for Bitcoin spot exchange-traded funds (ETFs) to be announced within a few days.

Key Levels

Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.