Nasdaq jumps on an AI-powered rally, Yen soars
Macro Scenes:
Wall Street higher, led by tech: Wall Street rebounded as the AI-powered rally returned, with Alphabet jumping 5% and AMD soring nearly 10% amid their respective AI achievements. The tech-heavy index, Nasdaq, rose more than 1% to a four-month high. Yen strengthened following BOJ Ueda’s comments: The Japanese Yen surged after the BOJ governor Kazuo Ueda signalled that the bank could shift policy. Traders bid for a termination of its negative rates as soon as BOJ’s December meeting. USD/JPY plunged more than 2% to a four-month low. US bond yields steady ahead of non-farm payroll: US government bond yields were flat ahead of the November non-farm payroll data. The US 10-year Treasury yield rose slightly as the weekly jobless claim was lower than expected. Crude oil eased losses: Crude oil futures were slightly higher, and oil markets may have been oversold, while a softened USD buoyed commodity prices in general. However, Chinese trade balance data showed that the country’s domestic demands saw further weakness, with its November imports only rising 0.6% year on year. The data could cap oil’s rebound. Gold extended gains: Gold futures rebounded slightly after a two-day slide after hitting a record high on Monday. The precious metal might maintain its upside momentum if Friday’s non-farm payroll data offered evidence for a slowdown labour market. Ethereum hit a 19-month high: The second-largest token, Ethereum, rose to above 2,300, the highest since May 2022, amid the Crypto frenzy. However, Bitcoin’s rally took a breather, pulling back to just above 43,200 after topping 44,000 early this week. Asian markets to open mixed: The ASX 200 futures fell 0.21%, the Hang Seng Index futures rose 0.27%, and Nikkei 225 futures fell 1.18%.Chart of the Day:
WTI, daily – The chart indicates that WTI futures may have been oversold as RSI entered an oversold territory, which may lead to a near-term rebound. The potential immediate support can be found around 69, and the possible near-term resistance may be at 74.43, around the Fibonacci retracement of 38.20%.
Source: CMC Markets as of 8 December 2023