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Wall Street showed overall weakness, closing with Nasdaq down 0.5%, S&P 500 down 0.2%, and Dow Jones down 0.1%. The U.S. 10-year Treasury yield fell 5 basis points to 4.61%, while crude oil dropped 1.6% to $78.75 per barrel.
The dollar generally strengthened before the New York open, with AUD/USD hitting a new low of 0.6192 and NZD/USD falling to 0.55845. It then began to weaken. Later, data was released showing U.S. December retail sales grew 0.4%, below the expected 0.6%. Weekly jobless claims data was mixed. The Philadelphia Fed Business Outlook Survey rose to a near 4-year high of 44.3, far exceeding expectations of -5.0. The dollar’s reaction to the data was muted, continuing to weaken, partly influenced by dovish Fed comments, with USD/JPY falling to a low of 155.11.
Asian stock markets closed higher, with the Nikkei up 0.3%, Hang Seng up 1.2%, and Shenzhen up 0.1%. Australia’s ASX index rose 1.4%, led by gains in the financial and real estate sectors.
European stock markets followed Asia’s strength, with Stoxx 50 up 1.1%, CAC 40 up 1.4%, DAX up 0.3%, and FTSE 100 up 0.6%.
Mid-market rates.
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Chart of the day
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