Morning Note: A round-up of today's market news
Market News
Treasuries fell after claims data bucked the case for Federal Reserve rate cuts. However, Kevin Hassett, speaking on Fox News, predicted a 25-bps reduction next week. The 10-year Treasury currently yields 4.11%. Gold moved up to $4,225 an ounce, while silver rose 2% to $58.30 an ounce, close to its all-time high, as strong ETF inflows sustain this year’s rally.
US equities nudged higher last night – S&P 500 (+0.1%); Nasdaq (+0.2%). Hewlett Packard tumbled post-market after giving disappointing sales forecasts for this quarter. Senators are seeking to block Nvidia from selling top AI chips to China.
In Asia this morning, equity markets were mixed: Nikkei 225 (-1.12%); Hang Seng (+0.6%); Shanghai Composite (+0.7%). The yen strengthened as the Bank of Japan is expected to raise interest rates at its December meeting. This comes against a backdrop of an unexpected 3% fall in household spending in October, a sign of fragile domestic demand. India’s central bank cut interest rates after inflation hit a low.
The FTSE 100 is currently 0.2% higher at 9,711, while Sterling trades at $1.3355 and €1.1450. Unilever has confirmed the demerger of its ice cream business, The Magnum Ice Cream Company (TMICC), will complete tomorrow, Saturday 6 December. The commencement of dealing in TMICC shares is expected to take place on Monday 8 December.
Copper futures in the US climbed to around $5.40 per pound, hitting their highest levels in more than four months amid ongoing supply disruptions, while a large withdrawal of metal from LME warehouses earlier this week fuelled speculation of a supply squeeze. Brent Crude trades at $63.20 a barrel.
Source: Bloomberg
