General Market Analysis 09/02/2024

Markets Grind Higher on Data and Fed Updates – Nasdaq Adds 0.25%

US stocks made more fresh ground in trading yesterday although at a much slower pace than we have seen recently as employment data once again pointed to a resilient job market and Fed speakers reinforced caution on the pace of coming rate cuts. The S&P did hit the magic 5,000 level but dropped off to close at 4,997.91, just 0.06% up on the day, the Dow rose 0.13% and the Nasdaq gained 0.24%. The dollar edged higher again with the Dxy up 0.14%, the UsdJpy the notable mover jumping close to 1% on the day. US Treasury yields also pushed higher again, the 2-year adding 3.4 basis points to 4.46% and the benchmark 10-year adding 7 basis points to trade at 4.17%. Oil jumped as hope for a ceasefire in Gaza was dashed, Brent up 3% to $81.36 a barrel and WTI up 3.2% to $76.22 a barrel and Gold inverted the previous days move, this time dropping sharply to $2,020 before once again finding itself around the $2,035 level at close of business.

Gold Traders Searching for Fresh Direction

Gold Traders are still looking for a fresh trend in 2024 as some conflicting factors have kept the shiny metal relatively rangebound for the first weeks of the year. Those at the coalface will hasten to add that it’s had its usual share of volatility in a relatively wide range but certainly we’re not in a trending environment. A change in dollar sentiment has led to some downside pressure as the greenback has moved higher across the board but geopolitical concerns have aided rallies. Overall, any traders fading moves towards $2,060 on the topside and $2,010 on the lower end of the spectrum would have had a very successful start to the year. Traders are now looking for the next catalyst that could take Gold into new ranges and next week’s CPI data could be exactly what they are looking for, especially if it is trading near one of the strong technical levels into the data release.

Traders Looking at More Rangebound Markets Today

It is set to be a relatively quiet end to the week today as markets have been largely trading in familiar ranges and there are only a couple of major risk events of note on the calendar. The Asian session will see an early focus on the Australian market as Reserve Bank Governor Michelle Bullock is due to testify before the House of Representatives Standing Committee on Economics, in Canberra. There is little of note in European session although we do hear from Buba President Joachim Nagel at an awards ceremony in Paris. The final session of the week see’s the main investor focus on the Canadian market with the release of the latest Employment data, expectations are for a 16k increase in the headline figure and for the unemployment rate to creep up to 5.9%


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