Daily Digest:
w/c 4 March 2024: US stock averages higher again to end the week, prodding at record levels; upcoming week's focus on the Fed's Powell testimony before Congress and the US Employment report

Stocks and Bonds Plunge to Start 2024

Intermediate

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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