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Market Wrap: Stocks, Bonds, Commodities
On Wednesday, U.S. stocks posted further gains ahead of the closely-watched inflation data that will be released today. The Dow Jones Industrial Average rose 268 points (+0.80%) to 33,973, the S&P 500 rose 50 points (+1.28%) to 3,969, and the Nasdaq 100 was up 196 points (+1.76%) to 11,402.
It is widely expected that the U.S. inflation rate eased further to 6.7% on year in December from 7.1% in November.
The U.S. 10-year Treasury yield dropped 9.1 basis points to 3.528%.
Real estate (+3.6%), retailing (+3.45%), and automobiles (+3.1%) sectors led the market higher.
Tesla (TSLA) gained 3.68%. It was reported that the electric-vehicle maker is close to a preliminary deal to set up a factory in Indonesia that could produce up to one million cars per year.
At the same time, other electric-vehicle makers Rivian Automotive (RIVN), NIO (NIO),and Lucid Group (LCID) rose 3.83%, 2.4%, and 10.29% respectively.
Also, Apple (AAPL) increased 2.11%, Amazon.com (AMZN) rose 5.81%, Alphabet (GOOGL) climbed 3.51%, and Microsoft (MSFT) was up 3.02%.
European stocks also closed higher. The DAX 40 rose 1.17%, the CAC 40 increased 0.80%, and the FTSE 100 gained 0.40%.
U.S. WTI crude futures advanced $2.50 to $77.61 a barrel. The U.S. Energy Department reported that the latest crude oil stockpiles increased 18.96 million barrels, in contrast to a reduction of 2.24 million barrels expected.
Gold price was little changed at $1,876 an ounce.
Benchmark copper price on the London Metal Exchange (LME) exceeded $9,000 a tonne for the first time since June on hopes that Chinese demand will rebound.
Market Wrap: Forex
The U.S. dollar index was stable at 103.25.
EUR/USD climbed 23 pips to 1.0756, a 7-month high.
GBP/USD declined 4 pips to 1.2150.
USD/JPY added 20 pips to 132.46.
AUD/USD rose 20 pips to 0.6909.
USD/CHF gained 87 pips to 0.9314, while USD/CAD dipped 2 pips to 1.3424.
Bitcoin posted a four-session rally trading at $17,900.
Morning Trading
In Asian trading hours, AUD/USD edged up to 0.6920. Government data released this morning showed that Australia's trade surplus totaled 13.2 billion Australian dollars, above 10.9 billion Australian dollars expected.
Meanwhile, USD/JPY slid to 131.55.
EUR/USD rose further to 1.0768 and GBP/USD climbed to 1.2160.
Gold bounced to $1,884.
Bitcoin advanced to $18,272.
Expected Today
In the U.S., consumer price index is expected to be up 6.7% on year in December, while weekly initial jobless claims are estimated at 215,000. | |
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