📆 Friday, January 3
► European stocks slipped, with the Stoxx Europe 600 down 0.25%. Mining stocks which saw strong gains yesterday led the losses as concerns about Chinese demand continued to weigh on the market. Automaker Stellantis NV dropped up to 3.8% after some of its electric vehicle models were excluded from US tax credits under new rules. Investors are increasingly cautious about global growth amid lingering uncertainty from China, as economic data continues to underwhelm expectations. Also European economic data has shows little signs of improvement, however, German unemployment rate (Dec) was reported at 6.1% vs. 6.2% expected and thus was unchanged to November data.
► US markets are trying again rebound after the S&P 500 posted its longest losing streak since April yesterday – with closing for the fifth session lower. Futures for the S&P 500 are currently modestly up at 0.25%, while Nasdaq 100 futures climbed 0.35%. Tesla trades 0.5% higher at the moment after dragging the Nasdaq 100 sharply lower yesterday falling 6.1%. United States Steel Corp. plunged more than 9% following reports that President Joe Biden blocked a $14.1 billion sale to Nippon Steel. Investors await the US ISM manufacturing data for fresh economic insights. Treasury yields are little changed / slightly lower, with the 10-year yield declining by currently 3 basis points to 4.55%, while the dollar weakened slightly.
► Asia-Pacific markets had a challenging session. Chinese stocks continued their worst start to the year since 2016, with the yuan breaching the 7.3 per dollar mark for the first time since late 2023. The Shanghai Composite fell sharply (-1.6%) as persistent concerns over the nation’s growth outlook and weak demand weighed on sentiment. Meanwhile, Japan’s yen remained stable, and its 10-year government bond yield dropped to a record low of 1.6%.
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