Mixed Day in US – Nasdaq and S&P Hit Fresh Highs
It was another mixed day in US markets yesterday as the first jobs data of the week showed more vacancies than expected. The major stock indices were mixed again, with the Dow losing 0.17% on the day, while the S&P and Nasdaq managed to hit fresh record closes, finishing up 0.05% and 0.4%, respectively. The dollar slipped lower, with the DXY dropping 0.15%, while treasury yields were mixed once more. Shorter-dated yields dipped, with the 2-year yield losing 4.7 basis points to settle at 4.151%, while longer-dated yields edged higher, with the 10-year yield gaining 0.5 basis points to 4.199%. Oil prices surged out of recent quiet ranges as tensions increased again in the Middle East, with Brent adding 2.5% to $73.62 and WTI rising 2.7% to $69.94. Gold remained at familiar levels, finishing the day up 0.2% at $2,644.05.
Korean Market Jumps into Focus for Investors
Korean markets drew significant attention overnight as unexpected political chaos gripped the country, causing a spike in volatility. Traders anticipate that Korean stocks and the Won will remain on the defensive following South Korean President Yoon Suk Yeol’s declaration of martial law yesterday, which he quickly reversed. The Won initially dropped to a two-year low against the dollar in the immediate aftermath of the announcement, before recovering most of its losses. However, the uncertainty is expected to keep investor concerns elevated, with traders predicting that any rallies in the currency will remain limited until the situation stabilises.
Busy Calendar Day Ahead for Traders
It is set to be a very busy day for traders, with key tier-one data and updates from central bank heavyweights due. Australian markets will be in sharp focus early in the Asian trading day, with the key quarterly GDP data set to be released by the ABS. Expectations are for a 0.5% quarter-on-quarter increase, and any significant deviation from this figure could trigger substantial movements in the Aussie, especially given the resolutely hawkish stance of the RBA at present. European markets will shift focus to the UK, with Bank of England Governor Andrew Bailey scheduled to speak midway through the day. Later, ECB President Christine Lagarde will testify at the European Parliament in Brussels. The New York session also promises to be lively, with both the ADP non-farm employment and ISM Services PMI data releases scheduled, followed by a speech from Fed Chair Jerome Powell later in the day.
