Market Update: Equities Dip and Investors Eye Fed Minutes and Data Releases

Market Update: Equities Dip and Investors Eye Fed Minutes and Data Releases

VoM News Desk | January 3, 2024 | 09:40 AM IST | Breaking News | Follow on Google News

Market Update: Equities Dip and Investors Eye Fed Minutes and Data Releases/PTI

Market Update: Equities Dip and Investors Eye Fed Minutes and Data Releases

Equities faced a setback on Wednesday, losing earlier optimism regarding anticipated US interest rate cuts, awaiting the release of Fed meeting minutes and upcoming jobs data.

In Asia, attention will be on Chinese tech stocks following Beijing’s move to replace a key official overseeing the gaming industry. This action suggests a potential attempt to quell concerns over strict regulations that led to an $80 billion sector-wide downturn.

Global bonds also experienced a decline, witnessing higher Treasury yields, particularly at the short end of the curve. This drop reflects skepticism about the anticipated extent of monetary easing, with central banks cautious about prematurely relinquishing the fight against inflation.

Investor focus now turns to the Fed’s December policy meeting minutes scheduled for later in the day. A series of upcoming data releases this week will be crucial in validating the perceived aggressive policy easing already factored in. Market expectations are currently betting on six rate cuts in 2024.

Later today, the ISM survey on US manufacturing and job openings data are due, followed by private payrolls and jobless claims results on Thursday. The much-awaited US nonfarm payrolls report is slated for release on Friday.

Bitcoin saw a 0.5% rise, hovering around $45,205, close to its 21-month peak of $45,922 reached on Tuesday.

Oil prices experienced marginal gains after Tuesday’s downturn. US crude futures inched up 0.1% to $70.43 a barrel, following a 1% drop previously. Brent crude remained steady at $75.86 a barrel.

Spot gold prices showed a slight increase, edging up 0.1% to $2,060.18 an ounce.

VoM News Desk

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