US Stocks Rebound – Dow Pushes 0.8% Higher
US stock markets rallied yesterday, with financial firms and small caps leading the way ahead of what promises to be a busy day for investors. The Dow led the charge, closing up 0.77%, followed by the S&P 500 and Nasdaq, which gained 0.47% and 0.3% respectively. Treasury yields dropped again, with the market now 94% certain of a 25-basis point cut from the Federal Reserve in November. The 2-year yield fell by 2.3 basis points to 3.933%, and the 10-year yield slipped by 2.6 basis points to 4.012%. Meanwhile, the dollar strengthened, with the DXY now trading at 103.59. Oil prices had a relatively quiet day compared to recent weeks, with Brent losing just 0.01% to reach $74.22, and WTI falling by 0.30% to $70.39. Gold came close to hitting another record high before easing off in late trading, closing the New York session at $2,673.77.
Euro in Focus for FX Players Today
Euro traders will be closely watching the markets later today as a barrage of fresh data and central bank updates arrive within a short time frame. In the span of just an hour, the European Central Bank’s rate announcement and accompanying statement will be released, followed by key US data, including retail sales, unemployment claims, and the Philadelphia Fed Manufacturing Index. This will culminate in the ECB’s press conference. With such an intense influx of information in such a brief period, we can expect some potentially volatile market movements as traders digest the updates, all while remaining vigilant for any significant opportunities. Expect swift and sharp moves during that hour, followed by a period of consolidation as the market reassesses the situation.
A Huge Day Ahead for Traders
Traders face a particularly busy day, with major updates coming thick and fast across time zones, leading to a ‘mega-hour’ during the London/New York crossover. In the Asian session, the focus will be on Australian markets, with key employment data expected early in the Sydney day. The market anticipates a 25,000 increase in employment, with the unemployment rate remaining steady at 4.2%. The ‘mega-hour’ will take place midway through the London session, when the European Central Bank is expected to announce a 25-basis point rate cut. Just 15 minutes later, key US data on retail sales and unemployment claims will be released, followed by the ECB’s press conference a further 15 minutes after that. Euro traders, in particular, are bracing for a tense and potentially hair-raising hour! Later in the day, US crude oil inventories will complete the data deluge.
