The global market session on 4 December 2024 began with mixed performances across major indices and asset classes. Markets are set to focus on key US economic data releases and broader global developments. Wednesday is expected to see heightened activity as investors react to important US economic data ahead of the Nonfarm Payroll figures this week. This dynamic may lead to amplified volatility in response to notable events and announcements.
KEY INDICATORS
US economic data & Powell speech
S&P Global Services PMI: The release of November’s PMI will be a key highlight, offering insights into the health of the manufacturing sector and business sentiment amid elevated interest rates.
ADP Nonfarm Employment Change: Traders will look forward to this release as the data will provide early insight into labour market trends, often influencing market expectations for the official nonfarm payrolls report on Friday.
Fed Chair Powell Speaks: Markets will react to Powell’s speech today. Traders will be closely monitoring this event for hints and clues about any upcoming monetary policy changes.
Asia-Pacific
Japan updates: The Nikkei 225 edged up 0.07% to 39,276.39, while Hong Kong’s Hang Seng dipped 0.02%, reflecting cautious investor sentiment over global economic concerns.
Japan’s Consumer Confidence – Updates on household sentiment will reflect the impact of wage growth and inflation trends.
Australia updates: Trade Balance – Markets will react to this week’s upcoming data and will provide insight into export and import performance, particularly in the context of resilient commodity markets.
China updates: Foreign Exchange Reserves – Markets will respond to the upcoming figures this week which will highlight the central bank’s currency management and overall financial stability.
MARKET MOVERS
EUR/USD
The market posted mild net daily gains, with all trading confined within the previous day’s range, reflecting an indecisive inside day.
Buying activity was observed in Asia.
Expect mixed and volatile trading conditions to continue.
A gap opened at 1.0577 between 29 November and 1 December.
The US dollar index dipped by 0.1% to 106.34. Investors are closely watching the US ADP employment report, which is projected to show an increase of 180,000 jobs for November.
The EUR/USD pair edged up 10 pips to 1.0507, while GBP/USD rose by 13 pips to 1.2668.
USD/JPY saw a slight decline of 6 pips to 149.53, and USD/CHF slipped 5 pips to 0.8862.
AUD/USD gained 10 pips to 0.6481, and USD/CAD rose by 23 pips to 1.4067.
Stocks and commodities
US markets showed mixed results. The Nasdaq 100 rose 64 points (+0.31%) to 21,229, and the S&P 500 gained 2 points (+0.05%) to 6,049, while the Dow Jones dipped 76 points (-0.17%) to 44,705. The technology sector continued its outperformance, while utilities and consumer staples led the decline.
European markets saw broad gains, with the DAX 40 climbing 0.42%, the CAC 40 rising 0.26%, and the FTSE 100 advancing 0.56%.
In commodities, gold increased by USD 4 (+0.17%) to USD 2,643, and crude oil futures (WTI) rose USD 1.84 (+2.70%) to USD 69.94.
Economic indicators for the day included the final readings of the S&P Global Services Purchasing Managers’ Index (PMI) for November, which is expected at 50.0 for the U.K. and 57.0 for the US The eurozone’s producer price index is projected to fall by 3.5% year-on-year in October.
In the US, the ADP employment report is anticipated to show an increase of 180,000 jobs in November. The ISM Services PMI is forecast to rise to 56.7, and factory orders are expected to grow by 0.3% month-on-month in October.
Asian session updates
The final reading of the HCOB Services Purchasing Managers’ Index (PMI) for November is expected to be 49.2 for the Eurozone, 49.4 for Germany, and 45.7 for France.
For the S&P Global Services PMI in November, estimates are 50.0 for the U.K. and 57.0 for the US
The Eurozone’s Producer Price Index (PPI) for October is anticipated to show a year-on-year decline of 3.5%.
In the US, ADP employment for November is forecasted to increase by 180,000, while the ISM Services PMI is expected to rise to 56.7. Additionally, factory orders are anticipated to grow by 0.3% month-on-month in October.
