DAILY MARKET NEWSLETTER - January 4, 2024 | Global Market Insights and Analysis by Trading Central

DAILY MARKET NEWSLETTER - January 4, 2024

Here are today's directional views from the global research desks of Trading Central! These are starting points for your research to identify opportunities that make sense for you.

MARKET WRAP

STOCKS, BONDS, COMMODITIES

On Wednesday, U.S. stocks closed lower:

• Dow Jones Industrial Average: -284 points (-0.76%) to 37,430

• S&P 500: -38 points (-0.80%) to 4,704

• Nasdaq 100: -175 points (-1.06%) to 16,368.

Key Highlights:

• Federal Reserve minutes hinted at the possibility of further rate hikes, intending to keep rates steady for a more extended period.

• Institute for Supply Management (ISM) manufacturing purchasing managers index rose to 47.4 in December (vs 47.3 expected).

• U.S. 10-year Treasury yield edged up to 3.920%.

• Energy (+1.52%) was the best-performing sector; automobiles & components (-3.97%), real estate (-2.26%), and consumer durables & apparel (-1.92%) sectors faced the most significant losses.

• Ford Motor (F) fell 3.70%, recalling about 113,000 F-150 pickup trucks due to a roll-away risk.

• Tesla (TSLA) slumped 4.01%.

• Keurig Dr Pepper (KDP) down 2.34% after being downgraded to “equal-weight” at Morgan Stanley.

• SoFi Technologies (SOFI) plunged 13.89% after being downgraded to “underperform” at KBW.

• European stocks closed lower: DAX 40 -1.38%, CAC 40 -1.58%, FTSE 100 -0.51%.

• Oil prices boosted by disruption at Libya's top oilfield. U.S. WTI crude-oil futures gained $2.59 (+3.68%) to $72.97 a barrel.

• Gold price declined $18 to $2,040 an ounce.

FOREX

The U.S. dollar held firm against other major currencies:

• Dollar index advanced to 102.46.

• EUR/USD fell 29 pips to 1.0918.

• USD/JPY jumped 128 pips (+0.90%) to 143.26.

• GBP/USD rose 50 pips to 1.2664; AUD/USD slipped 33 pips to 0.6727.

• USD/CHF dipped 5 pips to 0.8494, and USD/CAD added 35 pips to 1.3357.

• Bitcoin sank over 4% to $42,860; Matrixport reported a potential SEC rejection of Bitcoin spot ETFs in January.

Key Forex Pairs:

• GBP/USD Intraday: Continuation of the rebound.

• USD/JPY Intraday: The upside prevails.

• EUR/USD Intraday: Continuation of the rebound.

• Dow Jones (CME)‎ (H4)‎ Intraday: Under pressure.

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

Analyst Views Chart and more information available for each Forex pair and Dow Jones on the Trading Central website.