The snapshot of the strongest to the weakest of the majors
As the new year begins, the snapshot of the forex market is showing the USD is the strongest and the CHF is the weakest. The US stocks have moved lower to start the year after solid gains in 2023. The Nasdaq futures are implying a sharp 155 point decline to start the year, while the S&P is down -28 points. US yields are higher with 10 year up nearly 10 basis points. That is helping to push the USD higher.
Bitcoin is trading at a 21-month high as markets anticipate the approval of a ETF for the largest crypto currency. There is a January 10 deadline to approve or reject a ETF application from Cathie Wood’s Ark and also 21 Shares. Approval would open the door for other offerings and that is helping the granddaddy of the cryptocurrencies.
Oil is higher as supply disruptions in the Red Sea force ships to divert the region due to Iranian-backed Houthi terrorists.
A snapshot of the markets currently shows:
- Crude oil is trading up $1.40 or 2.0% at $73.08.
- Gold is trading up $4.66 or 0.22% at $2067.31. At this time Friday, it was trading at $2063.50
- Silver is trading up $0.10 or 0.44% at $23.88. At this time Friday, it was trading at $23.70
- Bitcoin traded sharply higher over the weekend after closing on Friday at $42,072. The current price trades at $45,452. At this time Friday, it was trading at $42,836
In the premarket for US stocks, the major indices are lower after Friday’s lower closes to end the trading year. IN 2023, the S&P index rose about 24% while the Nasdaq index increased by over 43%. Today, the Nasdaq index is down nearly -1% in premarket trading leading the way to the downside for the 3 major indices. At risk this week, is the nine-week winning streak for the major indices. A snapshot of the market is showing:
- Dow Industrial Average futures are implying a decline of -181 points. On Friday the index fell -20.56 points or -0.05% at 37689.55.
- S&P futures are implying a decline of -30.02 points. On Friday the index fell -13.54 points or -0.28% at 4769.82
- Nasdaq futures are implying a sharp decline of -165 points. On Friday, the index fell -83.78 points or -0.56% at 15011.35
In the European equity market, major indices are lower as well after solid gains (mostly) in 2023:
- German DAX -0.47%
- France CAC -0.72%
- UK FTSE 100 -0.43%
- Spain’s Ibex + 0.35%.
- Italy’s FTSE MIB +0.30% (10 minute delay)
In the Asian-Pacific market major indices closed mixed:
- Japan’s Nikkei 225, -0.22%
- China’s Shanghai composite index , -0.43%
- Hong Kong’s Hang Seng index, -1.52%
- Australia S&P/ASX +0.49%
Looking at the US debt market, yields are trading sharply higher to start the new year:
- 2-year yield 4.316%, +6.6 basis points. Friday at this time, the yield was at 4.291%
- 5-year yield 3.920% +9.0 basis points. Friday at this time, the yield was at 3.862%
- 10-year yield 3.951% +9.2 basis points. Friday at this time, the yield was at 3.871%
- 30-year yield 4.097% +8.0 basis points. Friday this time, the yield was at 4.02%
In the European debt market, the benchmark 10-year yields are higher. with the UK yield up 13.3 basis points.
European benchmark 10 year yields