Today’s Outlook:
• The S&P 500 and Nasdaq Composite rose to fresh records on Friday after November jobs data came in slightly better than expected, but not so hot as to deter the Federal Reserve from cutting rates again later this month. S&P 500 climbed 0.25% to 6,090.27. Tech-heavy Nasdaq advanced 0.81% to 19,859.77, bolstered by gains in Tesla, Meta Platforms and Amazon. Both indexes touched new all-time highs during the session and closed at records. The Dow Jones Industrial Average slipped 123.19 points, or 0.28%, to close at 44,642.52. The S&P 500 and Nasdaq went on to their third straight positive week as well, rising 0.96% and 3.34%, respectively. The Dow slipped 0.6% during the period.
• MARKET SENTIMENT: 3Q24 Japanese GDP (QoQ), Australia RBA December Interest Rate Decision, Germany November CPI, Canada BoC Interest Rate Decision, US Crude Oil Inventories, US 10-Year Note Auction, Switzerland 4Q24 SNB Interest Rate Decision, Europe December Deposit Facility Rate, ECB December Interest Rate Decision, US Initial Jobless Claims, US November PPI, UK October GDP.
• ASIA MARKETS: Attention turns to China on Monday and the release of November inflation data, with global investor sentiment broadly upbeat as the relentless rally on Wall Street continues but tempered by an increasingly volatile geopolitical backdrop. The toppling of Syrian President Bashar al-Assad and the uncertainty that unleashes on an already volatile Middle East and criminal charges against South Korean President Yoon Suk Yeol.
• CURRENCY & FIXED INCOME: The U.S. dollar ticked up Friday after data showed the unemployment rate in the world’s largest economy edged higher in November, while gains in nonfarm payrolls were generally in line with expectations, keeping the Federal Reserve on track to cut interest rates later this month. Nonfarm payrolls expanded by 227,000 jobs last month after rising an upwardly revised 36,000 in October, from 12,000. Treasury yields traded lower on Friday as investors digested key payroll data that kept the door open for another rate cut from the Federal Reserve later this month. The yield on the 10-year Treasury fell less than 3 basis points to 4.153%. Meanwhile, the 2-year Treasury yield declined less than 5 basis points to 4.098%. One basis point is equal to 0.01% and yields and prices move in opposite directions.
– In Asia, the dollar rose versus South Korea’s won after local media reported the nation’s main opposition Democratic Party said lawmakers were on standby after receiving reports of another martial law declaration. The won weakened, leaving the dollar up 0.6% at 1,423.56. The political upheaval has kept Korean markets on tenterhooks even as authorities pledged to provide “unlimited liquidity” to stabilize conditions.
– European markets closed slightly higher on Friday as investors in the region reviewed the latest political developments in France. The pan-European Stoxx 600 provisionally ended up 0.2%, erasing earlier losses. France’s CAC 40 index was 1.4% higher, despite ongoing political turmoil in the country. Investors are still digesting a vote that toppled French Prime Minister Michel Barnier’s minority government on Wednesday evening — a motion backed by both left and right-leaning lawmakers after Barnier forced his contested budget through parliament without a vote.
– The November labor report, released Friday morning, revealed that nonfarm payrolls increased by 227,000 last month, above the Dow Jones estimate of 214,000 and marking a huge hike from October’s upwardly revised gain of 36,000. The unemployment rate nudged up to 4.2%, as expected.
• COMMODITIES: Oil prices fell on Friday as analysts continued to forecast a supply surplus in 2025 despite the OPEC+ decision to postpone planned supply increases and extend deep output cuts to the end of 2026. Brent crude futures lost 97 cents, or 1.35%, to close at $71.12 per barrel. U.S. West Texas Intermediate crude futures shed $1.10, or 1.61%, to settle at $67.20 per barrel. The Organization of the Petroleum Exporting Countries and its allies on Thursday pushed back the start of oil output rises by three months until April and extended the full unwinding of cuts by a year until the end of 2026.
– Gold prices were inched higher on Friday after the November U.S. job growth report suggested the labor market continues to ease gradually, leaving room for the Federal Reserve to cut interest rates again. U.S. gold futures rose 0.2% to $2,654.50. Meanwhile, spot gold was marginally higher at $2,632.53 per ounce. U.S. job growth surged in November, but this probably does not signal a material shift in labor market conditions that continue to ease steadily and allows the Fed to cut interest rates again this month.
• JCI continued its rebound by 81.21 bps (1.11%) from the low support of 7041. NHKSI RESEARCH is of the opinion JCI’s rebound will continue to form its window dressing journey in the last month of 2024. Investors/traders are advised to BUY for stocks that have rebounded from support area earlier this week. RUPIAH exchange rate is entrenched at 15,924/USD, there are hopes of “strengthening” Rupiah towards 15,600 – 15,500 at the end of this year based on the plan to cut FFR at the FOMC MEETING on 17-18 December.
Company News
• WIFI: Solusi Sinergi Digital (WIFI) Appoints Shannedy Ong as Director
• PMJS: Mitsubishi Dealer Issuer Aims to Increase Sales by 15% in 2025
• PYFA: PYFA Entity Pledges AUD155 Million Assets
Domestic & Global News
Prabowo Confirms VAT Increase to 12% per January 2025 for Certain Products
Assad’s 24-year Rule Ends, Syrians Celebrate
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