Daily Digest:
w/c 15 July - Financials earnings reports kick off the week, then we get Netflix results Thursday. US Retail Sales is the standout macro data this week on Tuesday. We also get the latest ECB interest rate decision on Thursday.

Stocks and Bonds Plunge to Start 2024


Macroeconomic/ geopolitical developments

  • Stocks and bonds sell off caused by concerns over Federal Reserve policy and a hotter-than-expected jobs report, partially correcting November-December gains.
Powell - Fed
  • US Fed Minutes give little clarity on rate cut timing. While consensus leans towards eventual decreases, the aftermath of the swiftest rate increase in four decades leaves a cloud of uncertainty.
  • PMI data stayed resilient, with S&P Global UK, US and Eurozone services PMI all beating expectations. 
  • The U.S. labor market ended 2023 on a strong note, with the US Employment report and ADP data beat expectations. Employers added 216,000 positions, surpassing the forecasted 170,000, while the unemployment rate remained stable at 3.7%. 
US Employemt report Dec 2023

Global financial market developments

  • US and global equity index futures plunge lower to start 2024.
  • US and European yields saw significant higher yield moves to multi-week yield highs.
  • The US Dollar Index rallied.
  • Gold futures sold off with the US Dollar gains. 
  • Oil futures rallied, with heightened tensions in the Middle east.

Key this week

Central Bank Watch: No central bank activity of note, but as usual watching for Fed speakers. 

Macro Data Watch: US CPI on Thursday is the standout in a relatively light data week. 

DateMajor Macro Data
01/08/2024Eurozone Retail Sales (YoY & MoM) and Consumer Confidence
01/09/2024Tokyo CPI; Australia Retail Sales; EU Unemployment Rate
01/10/2024Australia CPI
01/11/2024US CPI (YoY & MoM); 
01/12/2024China CPI (YoY & MoM) and PPI (MoM); UK GDP; US PPI (YoY & MoM); Michigan Consumer Sentiment Index

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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