Markets:
- WTI crude oil fell $0.49 or -0.65% at $73.43
- Gold down $-2.23 or -0.08% at $2636.47
- Silver euros $0.35 or less 1.17% at $29.94
- Bitcoin is back above the $100,000 level at $101,830. The highest value of the NH sector was 102 514 US dollars
The US dollar fell against most of the major currency pairs except the JPY (the greenback gained 0.21%). The USD fell the most against the CAD (-0.84%) despite the resignation of PM Trudeau as Prime Minister, but not until a new leader is elected. The US dollar was also weaker by -0.78% against the EUR, and by -0.79% against the GBP. Below are the % changes of the major currencies against the USD:
Basically, the Washington Post article attributed the decline of the dollar saying Pres. elect Trump considering imposing global tariffs but only on 'critical goods'.
Trump later dismissed the article saying:
The story in the Washington Post, citing so-called anonymous sources, which do not exist, incorrectly states that my tariff policy will be refunded. That is wrong. The Washington Post knows it's wrong. It is just another example of Fake News.
Despite his protest, the decrease in the USD remained.
US yields moved lower on the first report, but pulled back the declines out on the yield curve. Looking at the near-close yield curve chart for today's shows:
- 2-year yield 4.270%, -0.9 basis points
- 5-year yield 4.424%, +1.4 basis points
- 10-year yield 4.623%, +2.9 basis points
- 30 year yield 4.845%, +3.0 basis points
In terms of economic calendar,
- The S&P world index fell to 55.4 from an initial 56.6. That was up from 54.9 last month
- US factory orders fell -0.4% compared to -0.3% estimate
Fed speech was limited to Fed Gov. Cook said that although the labor market has cooled over the past year, it is still strong and is not a major cause of inflation. She noted that risks to inflation and employment are now relatively balanced, allowing the Federal Reserve to approach rate cuts cautiously. Cook identified private credit and artificial intelligence as emerging financial stability risks and suggested that lowering rates to neutral would be appropriate over time.
Broader US stock indexes rose for the second day in a row. The Dow fell to zero. A snapshot of the final numbers shows:
- Dow industrial average, -0.06%
- S&P Index, +0.55%
- NASDAQ Index, +1.24%
- Russell 2000, -0.08%
Nvidia CEO Jensen Huang will deliver a keynote address at CES 2025 on Monday at 6:30pm PT. Rumors suggest that the event will feature new GPUs for PCs, updates to robotics, cloud AI initiatives, and possibly details on the next-generation “Rubin” chip that will follow the Blackwell chip. From Tuesday to Friday, Nvidia will showcase advances in AI, gaming, and automotive technologies. Nvidia shares closed at a new record high of $149.43 up 3.43%
