Financial Markets
This week, the markets were shaken by hawkish statements by the FED, who signaled fewer and smaller rate cuts for 2025. The main stock market indices were down on Wednesday, and US bond yields adjusted up.
Overall, for the week, the S&P500 and the NASDAQ 100 lost 2% and 2.3%, respectively. More dramatically, the small cap index (Russel 2000) lost 4.5%, indicating a flight to quality and a risk-off attitude from investors and institutions.
Gold and silver lost 0.9% and 3.5%, respectively. Gold is on the lower range of the current trading channel, while silver is looking weaker and might continue to fall during the next days. If the price of gold doesn't remain in the current trading channel, it might go lateral or correct in the short/medium term. It seems like the rally in gold is cooling off.
Bitcoin fell 7.5% and might fall back to 92-93k$ if the correction continues.
The
relative
strength of the US dollar (DXY) was up this week (~108). The
EUR/USD is around 1.04$, the GBP/USD is at 1.26$, and the USD/JPY is at
156.4 JPY.
US M2 money supply at the date of 28th October 2024 was up by 0.42%.
The
national financial
conditions index (NFCI) for the week of 9th December 2024 loosened by 2% and doesn't translate signs of financial stress in
the markets. Note that this indicator is delayed by a week.
The VIX spiked up to 28 and closed the week around 18, indicating more search for put options and fear from the part of investors/speculators.
Comments
Post a Comment