More Records for US Stocks – Nasdaq up 1.15%
US Stocks indices rounded out the week on more record highs on Friday after some weak data prints in the US increased hopes for rate cuts from the Fed. The Nasdaq jumped 1.14%, the S&P gained 0.8% and the Dow added 0.23%. US treasury yields took a dip after the numbers, the 2-year losing 11 basis points to trade down to 4.535% again and the 10-year dropping 6.6 basis points down to 4.186%. The dollar dropped slightly against most of the majors, but again is still trading in familiar ranges against the currencies but it took a beating against Gold as the precious metal rallied over 2% on the day to hit fresh yearly highs. Oil prices jumped as well in the negative dollar environment, Brent rising 2% to $83.55 and WTI jumping 2.2% to $79.97.
Gold Surges to Fresh 2024 Highs
Gold prices surged higher on Friday as data in the US pointed to weaker conditions and therefore increased chances of more imminent rate cuts from the Fed. US Treasury yields and the dollar dropped after a weak ISM print and lower then expected University of Michigan survey results making Gold more attractive to investors against the greenback and it powered over 2% higher, from a low around $2,037 to a high at $2,088, the December 2023 high, on the day. There was probably some stop-loss flow in there to add to the momentum as prices broke through trendline resistance and a notably triple top level. Traders will now be looking forward to a data packed week to see if the shiny metal can maintain this momentum or if it drops back into the range. A strong break through the recent highs, opens the way for a run up to the all-time high at $2,135 from a technical point of view.
Calm Day Before the Storm of a Trading Week
Asian markets will open on the front foot again today on the back of another stellar day on Wall Street on Friday. It looks to be a relatively calm day in terms of economic data releases ahead of what should be a busy week for the market ahead. There is nothing to excite traders in the Asian session and so most investors will be hoping for that ‘risk on’ momentum to continue through the session. Swiss traders will however be on their toes for the Swiss CPI data release early in the European session which is likely to see some volatility in the franc, expectation is for a 0.5% m/m increase. There is nothing due out in the New York session and traders are expecting more subdued trading conditions than Friday ahead of some major data updates later in the week.
