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Market Wrap: Stocks, Bonds, Commodities
On Monday, U.S. stocks remained under pressure. The Dow Jones Industrial Average dropped 34 points (-0.10%) to 33,891, the S&P 500 fell 25 points (-0.61%) to 4,111, and the Nasdaq 100 was down 108 points (-0.87%) to 12,464.
The U.S. 10-year Treasury yield jumped 11.9 basis points to a four-week high of 3.644%.
U.S. Treasury Secretary Janet Yellen said the U.S. could avoid a recession considering a strong labor market and easing inflation.
Federal Reserve Chair Jerome Powell will speak at the Economic Club of Washington later today.
Automobiles (+1.87%) and insurance (+1.02%) sectors outperformed the market, while cConsumer durables & apparel (-2.04%), technology hardware & equipment (-1.71%), and media (-1.33%) sectors lagged behind.
Newmont Mining (NEM) fell 4.51% after the gold and copper mining company offered to acquire Australian-based gold producer Newcrest Mining for about $17 billion.
Dell Technologies (DELL) dropped 3.03% after the personal computer firm announced plans to cut about 6,650 jobs or about 5% of its workforce.
Tyson Foods (TSN) lost 4.61% as the biggest U.S. meat company's quarterly results missed expectations.
Catalent (CTLT) surged 19.54% on news reports that Danaher (DHR), a manufacturer of scientific instruments and consumables, is interested in buying the company.
Meanwhile, Tesla (TSLA) rose 2.52% as the electric-vehicle maker increased prices of its Model Y vehicles in the U.S.
European stocks also closed lower. The DAX 40 fell 0.84%, the CAC 40 declined 1.34%, and the FTSE 100 was down 0.82%.
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U.S. WTI crude futures gained $1.10 to $74.50 a barrel. Turkey's major oil export hub in Ceyhan saw its operations halted after a massive earthquake hit the region, which stopped key crude oil flows from Iraq and Azerbaijan.
Gold price added $2 to $1,867 an ounce following a 2.5% slide Friday.
Market Wrap: Forex
The U.S. dollar remained firm against other major currencies. The dollar index climbed to 103.63.
EUR/USD slid 70 pips to 1.0725. In the Eurozone, data showed that retail sales dropped 2.7% on month in December (vs -2.3% expected).
Germany's factory orders grew 3.2% on month in December (vs +1.9% expected).
USD/JPY jumped 145 pips to 132.64.
GBP/USD declined 35 pips to 1.2021. In the U.K., the S&P Global construction purchasing managers index posted at 48.4 in January (vs 46.5 expected).
AUD/USD fell 40 pips to 0.6883.
USD/CHF added 23 pips to 0.9284, and USD/CAD gained 52 pips to 1.3449.
Bitcoin failed to regain the $23,000 level.
Morning Trading
In Asian trading hours, AUD/USD rebounded to 0.6940 from 0.6883 in the prior session. The Reserve Bank of Australia lifted its benchmark rate by 25 basis points to 3.35% as expected.
On the other hand, government data released earlier today showed that Australia's trade surplus totaled 12.24 billion Australian dollars in December, above 11.50 billion Australian dollars estimated.
Meanwhile, EUR/USD edged up to 1.0735 and GBP/USD climbed to 1.2042. This morning, the British Retail Consortium reported that like-for-like retail sales increased 3.9% on year in January (vs +6.5% in December).
USD/JPY eased to 132.35. Earlier today, Japan's data showed that household spending declined 1.3% on year in December (vs -0.1% expected).
Gold advanced to $1,873.
Bitcoin was little changed at $22,880.
Expected Today
Germany's December industrial production is estimated to be down 1.4% on month.
France's December trade deficit is anticipated at 12.4 billion euros.
U.K. January Halifax house price index is expected to be drop 0.3% on month.
In the U.S., December trade deficit is estimated at 68.8 billion dollars.
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