Market Update 20/12/2024

Wall St. rebounded, with major indices up 0.3% and 10-year yields rising to 4.57%. Crude fell 1% to $69.90. AUD/USD traded a 0.6199-0.6265 range, settling at 0.6245.

– Asia: Equities mostly weakened; Nikkei -0.7%, Hang Seng -0.6%, Shenzhen +0.1%.

– ASX dropped 1.7%, led by tech and materials. AUD/USD hit a yearly low of 0.6199 on hawkish FOMC projections.

– Japan: BoJ held rates at 0.25%, awaiting more certainty for hikes. USD/JPY surged to 157.16.

– Europe: Equities fell; Euro Stoxx 50 -1%, FTSE 100 -1.1%. EUR/USD rose to 1.0422, AUD/USD to 0.6250, and GBP/USD to 1.2665 before dropping ahead of the BoE decision.

– UK: BoE held rates at 4.75% (6-3 vote); dovish tone revised growth forecasts lower. GBP/USD slid to 1.2590.

– US Data: Q3 GDP revised to 3.1% (from 2.8%), with stronger Personal Consumption (3.7%). Weekly jobless claims beat forecasts at 220k, but the Philly Fed Index fell sharply to -16.4. USD softened; AUD/USD hit 0.6265 highs.

– Late session: Leading Index rose (+0.3%), Existing Home Sales beat forecasts (+4.8%). USD/JPY climbed to 157.80, GBP/USD slid to new lows of 1.2505. Wall St. closed steady, with indices up 0.5%.