Comprehensive Summary of the Day's Events - December 5, 2024
Comprehensive Summary of the Day's Events - December 5, 2024
Global Financial Markets and Economic Developments
1. United States:
- The Federal Reserve's funding loans decreased to $17.1 billion for the week ending December 4, down from $18.5 billion previously.
- Discount-window loans fell slightly to $2.43 billion from $2.5 billion.
- Initial jobless claims rose to a one-month high of 224,000, with continued claims decreasing slightly to 1.871 million. Economists anticipate November's nonfarm payrolls to reflect a rebound.
- Treasury yields held steady, with the 10-year yield at 4.18%, while short-term Treasuries underperformed.
- The S&P 500 fell 0.2%, the Nasdaq 100 by 0.3%, and the Dow by 0.6% as markets awaited critical jobs data. Meme stocks such as GameStop surged on social media speculation.
- The US trade deficit narrowed to $73.8 billion in October, with trade figures showing improvement in key areas.
2. Asia:
- South Korea's October current account surplus decreased to $9.784 billion from $11.12 billion. GDP for Q3 remained unchanged at 0.1% QoQ and 1.5% YoY.
- Japanese markets were influenced by comments from BoJ Board Member Nakamura, who emphasized a data-dependent approach to potential rate hikes and warned about weak consumer spending.
- Australia's trade surplus exceeded expectations, reaching AUD 5.953 billion in October, with exports rising 3.6%.
3. Europe:
- France faced political turmoil after Prime Minister Barnier's government lost a no-confidence vote. President Macron announced plans to name a new prime minister shortly while reiterating his commitment to fulfilling his mandate.
- Eurozone retail sales fell by 0.5% MoM in October, with YoY growth at 1.9%, slightly above forecasts.
- Germany reported weaker-than-expected industrial orders (-1.5% MoM) and mixed construction PMI data.
- The European Central Bank is widely expected to cut rates by 25 bps in December to 3.00%, with further cuts anticipated into 2025.
Energy and Commodities
- OPEC+ concluded its meeting with a decision to delay a planned oil output increase to April 2025. Oil production cuts will gradually unwind through September 2026. Russia and Saudi Arabia's quotas were confirmed for the next year.
- Crude oil prices dipped, with Brent settling at $72.09 per barrel and WTI at $68.30 per barrel.
- Natural gas inventories fell by 30 billion cubic feet, below forecasts, reflecting seasonal demand dynamics.
Cryptocurrency and Technology
- Bitcoin surged past $100,000, buoyed by President-elect Trump's nomination of a crypto-friendly SEC chair. The Crypto Fear and Greed Index indicated "Extreme Greed" at 84/100.
Political Developments
1. France:
- Polls indicated 54% of French citizens want President Macron to resign amid fiscal and political uncertainty. The far-right leader Marine Le Pen proposed alliances to unseat Macron's government.
- The crisis may delay France's efforts to reduce its budget deficit.
2. South Korea:
- Political tensions heightened as President Yoon faced potential impeachment proceedings, impacting market sentiment.
3. Middle East:
- Israel reportedly updated Hamas on a proposal for hostage releases and a ceasefire, mediated by Egypt.
Other Key Updates
- China's central bank injected liquidity into the financial system while strengthening the yuan's fixing.
- Australian household spending rose 2.8% YoY in October, signaling resilience in consumer activity.
- Fitch Ratings warned of rising US inflation risks due to robust consumer spending and upcoming tariff hikes.
This summary encapsulates the economic, political, and financial narratives driving global markets and sentiment today.
Global Financial Markets and Economic Developments
1. United States:
- The Federal Reserve's funding loans decreased to $17.1 billion for the week ending December 4, down from $18.5 billion previously.
- Discount-window loans fell slightly to $2.43 billion from $2.5 billion.
- Initial jobless claims rose to a one-month high of 224,000, with continued claims decreasing slightly to 1.871 million. Economists anticipate November's nonfarm payrolls to reflect a rebound.
- Treasury yields held steady, with the 10-year yield at 4.18%, while short-term Treasuries underperformed.
- The S&P 500 fell 0.2%, the Nasdaq 100 by 0.3%, and the Dow by 0.6% as markets awaited critical jobs data. Meme stocks such as GameStop surged on social media speculation.
- The US trade deficit narrowed to $73.8 billion in October, with trade figures showing improvement in key areas.
2. Asia:
- South Korea's October current account surplus decreased to $9.784 billion from $11.12 billion. GDP for Q3 remained unchanged at 0.1% QoQ and 1.5% YoY.
- Japanese markets were influenced by comments from BoJ Board Member Nakamura, who emphasized a data-dependent approach to potential rate hikes and warned about weak consumer spending.
- Australia's trade surplus exceeded expectations, reaching AUD 5.953 billion in October, with exports rising 3.6%.
3. Europe:
- France faced political turmoil after Prime Minister Barnier's government lost a no-confidence vote. President Macron announced plans to name a new prime minister shortly while reiterating his commitment to fulfilling his mandate.
- Eurozone retail sales fell by 0.5% MoM in October, with YoY growth at 1.9%, slightly above forecasts.
- Germany reported weaker-than-expected industrial orders (-1.5% MoM) and mixed construction PMI data.
- The European Central Bank is widely expected to cut rates by 25 bps in December to 3.00%, with further cuts anticipated into 2025.
Energy and Commodities
- OPEC+ concluded its meeting with a decision to delay a planned oil output increase to April 2025. Oil production cuts will gradually unwind through September 2026. Russia and Saudi Arabia's quotas were confirmed for the next year.
- Crude oil prices dipped, with Brent settling at $72.09 per barrel and WTI at $68.30 per barrel.
- Natural gas inventories fell by 30 billion cubic feet, below forecasts, reflecting seasonal demand dynamics.
Cryptocurrency and Technology
- Bitcoin surged past $100,000, buoyed by President-elect Trump's nomination of a crypto-friendly SEC chair. The Crypto Fear and Greed Index indicated "Extreme Greed" at 84/100.
Political Developments
1. France:
- Polls indicated 54% of French citizens want President Macron to resign amid fiscal and political uncertainty. The far-right leader Marine Le Pen proposed alliances to unseat Macron's government.
- The crisis may delay France's efforts to reduce its budget deficit.
2. South Korea:
- Political tensions heightened as President Yoon faced potential impeachment proceedings, impacting market sentiment.
3. Middle East:
- Israel reportedly updated Hamas on a proposal for hostage releases and a ceasefire, mediated by Egypt.
Other Key Updates
- China's central bank injected liquidity into the financial system while strengthening the yuan's fixing.
- Australian household spending rose 2.8% YoY in October, signaling resilience in consumer activity.
- Fitch Ratings warned of rising US inflation risks due to robust consumer spending and upcoming tariff hikes.
This summary encapsulates the economic, political, and financial narratives driving global markets and sentiment today.
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💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
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