CURRENCY MARKET WRAP 

As of Mon 6 Jan, Singapore Time zone UTC+8

U.S. Dollar Index, -0.01%, 96.84
USDJPY, -0.45%, $108.09
EURUSD, -0.11%, $1.1160
GBPUSD, -0.44%, $1.3088
USDCAD, +0.16%, $1.3001
AUDUSD, -0.60%, $0.6952
NZDUSD, -0.55%, $0.6665

ISM Manufacturing Index for December registered a 47.2% reading (consensus 49.0%). That was below the 48.1% reading for November, the fifth straight sub-50.0% reading, and the lowest level for the index since June 2009. Total construction spending increased 0.6% m/m in November (consensus +0.3%) on the heels of an upwardly revised 0.1% increase (from -0.8%) in October. Residential spending was up 1.8% m/m and nonresidential spending was down 0.3% m/m.

Risk Assets sold off after U.S. airstrike killed Iran’s top military commander, General Suleimani, prompting retaliatory threats from Iran.Trump said the U.S. was not trying to start a war or seek regime change in Iran, but the situation did provide an excuse for investors to reduce exposure from a market trading at record highs. In addition, the weakest reading for the ISM Manufacturing Index since June 2009, which declined to 47.2% in December (consensus 49.0%) from 48.1% in November, also helped restrain risk sentiment.

Separately, the FOMC Minutes from the Dec. 10-11 meeting went largely unnoticed, which wasn’t surprising considering that the 2019 committee viewed policy as appropriate unless the economic outlook changes.

The 2-yr yield fell six basis points to 1.51%, and the 10-yr yield fell nine basis points to 1.79%. The U.S. Dollar Index increased 0.01% to 96.84.

STOCK MARKET WRAP 

S&P500, -0.71%, 3,234.85
Nasdaq, -0.79%, 9,020.77
Nikkei Futures, -1.76%, 23,692.5

Given the geopolitical angst, investors also saw opportunities in WTI crude ($63.03, +1.88, +3.1%) on possible disruptions to production and in the iShares Dow Jones U.S. Aerospace & Defense ETF (ITA 229.98, +2.60, +1.1%) on speculation of increased government spending. Gold futures increased 1.6% to $1552.40/ozt.

Notable stocks included Tesla (TSLA 443.01, +12.75, +3.0%) after it beat fourth quarter delivery estimates, Lamb Weston (LW 93.56, +9.47, +11.3%) after it beat top and bottom-line estimates, and Incyte (INCY 77.90, 8.07, -9.4%) after providing disappointing results for a promising drug candidate.

CURRENCY MARKET WRAP 

As of Fri 3rd Jan, Singapore Time zone UTC+8

U.S. Dollar Index, +0.37%, 96.80
USDJPY, -0.14%, $108.54
EURUSD, -0.37%, $1.1171
GBPUSD, -0.81%, $1.3147
USDCAD, -0.02%, $1.2984
AUDUSD, -0.48%, $0.6984
NZDUSD, -0.39%, $0.6698

U.S. Initial claims for the week ending December 28 decreased by 2,000 to 222,000 (consensus 225,000) while continuing claims for the week ending December 21 increased by 5,000 to 1.728 million.

China started the new year by announcing it will cut the reserve requirement ratio for small and large banks by 50 basis points on Jan. 6, providing about $115 billion in additional liquidity that can be lent out.

The 2-yr yield was unchanged at 1.57%, and the 10-yr yield declined four basis points to 1.88%. The U.S. Dollar Index rose 0.37% to 96.81. WTI crude increased 0.1% (+0.05) to $61.15/bbl.

STOCK MARKET WRAP 

S&P500, +0.84%, 3,257.85
Nasdaq, +1.33%, 9,092.19
Nikkei Futures, +0.77%, 23,692.5

S&P 500 industrials sector (+1.8%) drew support from General Electric (GE 11.93, +0.77, +6.9%), and the Philadelphia Semiconductor Index (+2.1%) pushed to new highs amid strength in AMD (AMD 49.10, +3.24, +7.1%), which had its price target raised $58 from $40 at Nomura.

The mega-cap stocks in the S&P 500 information technology (+1.7%), communication services (+1.3%), and consumer discretionary (+1.3%) sectors continued to outperform, too. Apple (AAPL 300.35, +6.70, +2.3%), Amazon (AMZN 1898.01, +50.17, +2.7%), Alphabet (GOOG 1367.37, +30.35, +2.3%), and Facebook (FB 209.78, +4.53, +2.2%) each climbed more than 2.0%.

CURRENCY MARKET WRAP 

As of Thu 2nd Jan, Singapore Time zone UTC+8

U.S. Dollar Index, -0.22%, 96.53
USDJPY, -0.24%, $108.62
EURUSD, +0.12%, $1.1212
GBPUSD, +1.11%, $1.3261
USDCAD, -0.60%, $1.2988
AUDUSD, +0.39%, $0.7022
NZDUSD, +0.18%, $0.6738

U.S. Conference Board’s Consumer Confidence Index slipped to 126.5 in December (consensus 128.0) from an upwardly revised 126.8 (from 125.5) in November.

In trade news, Trump said the Phase One deal will be signed at the White House on Jan. 15 and that he will later travel to Beijing for Phase Two talks. Market reaction was muted, as the signing news was already priced in.

U.S. Treasuries finished the thinly-traded session on a lower note. The 2-yr yield increased one basis point to 1.57% (-93 bps for 2019), and the 10-yr yield increased two basis points to 1.92% (-77 bps for 2019). The U.S. Dollar Index declined 0.22% to 96.53. WTI crude declined 0.3%, or $0.16, to $61.48/bbl (+35.4% for 2019).

STOCK MARKET WRAP 

S&P500, +0.29%, 3,230.78
Nasdaq, +0.30%, 8,972.60
Nikkei Futures, +0.30%, 23,512.5

S&P 500 advanced 0.29% on this New Year’s Eve, wrapping up a phenomenal 2019 with a 28.9% gain. The Dow Jones Industrial Average, Nasdaq Composite, and Russell 2000 also increased 0.3% apiece to extend their yearly gains to 22.3%, 35.2%, and 23.7%, respectively.

Tuesday’s action was tight-ranged amid a lack of conviction for most of the session, but renewed buying interest in the last hour of trading helped stocks close at session highs. All 11 S&P 500 sectors finished in positive territory, with the materials (+0.8%), energy (+0.7%), and real estate (+0.6%) sectors advancing the most.

Corporate news was relatively light, but it’s worth noting that Apple (AAPL 293.65, +2.13, +0.7%) extended its yearly gain to an impressive 86.2%. NVIDIA (NVDA 235.30, +2.98, +1.3%) had its price target raised to $275 from $240 at The Benchmark Company. Meritor (MTOR 26.19, +2.87, +12.3%) will join the S&P SmallCap 600 on Jan. 6.

CURRENCY MARKET WRAP 

As of Tue 31st Dec, Singapore Time zone UTC+8

U.S. Dollar Index, -0.23%, 96.74
USDJPY, -0.51%, $108.88
EURUSD, +0.22%, $1.1206
GBPUSD, +0.16%, $1.3111
USDCAD, -0.11%, $1.3061
AUDUSD, +0.27%, $0.7001
NZDUSD, +0.45%, $0.6734

There was little news of consequence to generate excitement in the market, although it was reported that China’s Vice Premier Lie Hue could visit Washington this weekend to sign a Phase One trade deal. U.S. negotiators are still waiting for their agreement to be translated into English, according to Director of Trade and Manufacturing Policy Peter Navarro.

U.S. Treasuries ended the session mixed, contributing to some curve-steepening activity. The 2-yr yield declined two basis points to 1.56%, while the 10-yr yield increased two basis points to 1.90%. The U.S. Dollar Index declined 0.23% to 96.74. WTI crude declined 0.2%, or $0.10, to $61.64/bbl.

STOCK MARKET WRAP 

S&P500, -0.58%, 3,221.29
Nasdaq, -0.67%, 8,945.99
Nikkei Futures, -1.40%, 23,422.5

Having entered yesterday’s session fresh off a series of record highs, including one on Friday, the broader market appeared overdue for some selling activity before the new year. All 11 S&P 500 sectors finished in negative territory with the communication services sector (-1.0%) declining the most. Interestingly, Apple (AAPL 291.52, +1.72, +0.6%) remained resilient and finished with a solid gain.

In automotive action, shares of Tesla (TSLA 414.70, -15.68, -3.6%) pulled back from record territory amid a cautious outlook from Cowen. Chinese competitor NIO (NIO 3.72, +1.30, +53.7%) rallied 54% following its earnings results.

CURRENCY MARKET WRAP 

As of Mon 30th Dec, Singapore Time zone UTC+8

U.S. Dollar Index, -0.63%, 96.92
USDJPY, -0.20%, $109.42
EURUSD, +0.71%, $1.1177
GBPUSD, +0.65%, $1.3077
USDCAD, -0.34%, $1.3078
AUDUSD, +0.46%, $0.6978
NZDUSD, +0.43%, $0.6700

There were no notable prints on Friday.

U.S. Treasuries increased in a steady advance, leaving yields near their session lows. The 2-yr yield declined five basis points to 1.58%, and the 10-yr yield declined three basis points to 1.87%. The U.S. Dollar Index fell 0.63% to 96.92. WTI crude increased 0.1% to $61.74/bbl.

STOCK MARKET WRAP 

S&P500, +0.01%, 3,240.02
Nasdaq, -0.17%, 9,006.62
Nikkei Futures, -0.21%, 23,840.0

The day started with the large-cap indices setting new intraday highs in a momentum, and sentiment-driven, trade. Buying enthusiasm quickly subsided amid a lack new stories, though, leaving the broader market little changed the rest of the session.

A defensive-oriented mindset took fold, which contributed to the gains in the S&P 500 consumer staples (+0.4%), real estate (+0.4%), and utilities (+0.3%) sectors. On the other hand, the energy (-0.5%) and materials (-0.3%) sectors underperformed.

Nike (NKE 101.57, +0.86, +0.9%) was a notable gainer after the stock was initiated with an Overweight rating at Consumer Edge Research. Shares of The Michaels Companies (MIK 8.00, +1.98, +32.9%) surged 33% after the company appointed former Walmart (WMT 119.59, +0.07, +0.1%) executive, Ashley Buchanan, as its newest CEO.

CURRENCY MARKET WRAP 

As of Thu 27th Dec, Singapore Time zone UTC+8

U.S. Dollar Index, -0.09%, 97.56
USDJPY, +0.16%, $109.54
EURUSD, +0.09%, $1.1101
GBPUSD, +0.31%, $1.3001
USDCAD, -0.40%, $1.3108
AUDUSD, +0.38%, $0.6946
NZDUSD, +0.59%, $0.6673

The holiday sales results showcased the strength of the U.S. consumer, while reports that the U.S. and China are close to signing a Phase One trade deal kept investors at ease. Initial claims for the week ending December 21 decreased by 13,000 to 222,000, as expected. Continuing claims for the week ending December 14 decreased by 6,000 to 1.719 million.

U.S. Treasuries held steady throughout the session. The 2-yr yield was unchanged at 1.63%, and the 10-yr yield declined one basis point to 1.91%. The U.S. Dollar Index declined 0.09% to 97.56. WTI crude rose 0.9%, or $0.55, to $61.70/bbl.

STOCK MARKET WRAP 

S&P500, +0.51%, 3,239.91
Nasdaq, +0.78%, 9,022.39
Nikkei Futures, +0.88%, 23,917.5

Amazon’s (AMZN 1868.77, +79.56) 4.5% gain stood out after the company said it had another record-breaking holiday season. A separate report from MasterCard SpendingPulse indicated that total retail sales, excluding autos, increased 3.4% yr/yr from Nov. 1 through Dec. 24 while online sales rose 18.8%.

It was no surprise, then, to see the S&P 500 consumer discretionary sector (+1.4%) as today’s sector leader. The communication services (+0.8%) and information technology (+0.7%) sectors followed suit amid solid gains in Apple (AAPL 289.91, +5.64, +2.0%), Alphabet (GOOG 1360.40, +16.84, +1.3%), and Facebook (FB 207.79, +2.67, +1.3%).

CURRENCY MARKET WRAP 

As of Wed 26th Dec, Singapore Time zone UTC+8

U.S. Dollar Index, -0.02%, 97.63
USDJPY, -0.01%, $109.38
EURUSD, +0.06%, $1.1094
GBPUSD, +0.20%, $1.2972
USDCAD, -0.07%, $1.3156
AUDUSD, +0.05%, $0.6926
NZDUSD, +0.08%, $0.6643

Tuesday’s session (Christmas Eve) included no drama, unlike last year’s Christmas Eve sell-off. The thinly-traded, and shortened, session perhaps received no more than a cursory glance from investors enjoying the holidays and the huge gains already registered this year.

Prior to the U.S. Treasury market’s early closure at 2:00 p.m. ET, the 2-yr yield was down one basis point to 1.64%, and the 10-yr yield was down three basis points to 1.91%. The U.S. Dollar Index was little changed at 97.65. WTI crude gained 0.8%, or $0.49, to $61.01/bbl.

STOCK MARKET WRAP 

S&P500, -0.02%, 3,223.38
Nasdaq, +0.08%, 8,952.88
Nikkei Futures, +0.04%, 23,760.0

From a sector standpoint, all 11 S&P 500 sectors finished within 0.3% of their flat lines. The real estate sector (+0.2%) finished on top, while the industrials sector (-0.3%) underperformed.

In corporate news, Uber (UBER 30.44, +0.11, +0.4%) announced that co-founder Travis Kalanick will resign from the Board of Directors on Dec. 31. Advanced Micro Devices (AMD 46.54, +1.08, +2.4%) had its price target raised to $53 from $50 at RBC Capital Mkts.