2 min Market Summary: 11 Dec 2018

As of Mon, Dec 10, 08:00 GMT (UTC +08:00)

USDJPY, +0.60%, $113.19.
EURUSD, -0.39%, $1.1356.
GBPUSD, -1.25%, $1.2560.
USDCAD, +0.52, $1.3398.
NZDUSD, +0.44%, $0.6874.

S&P500, +0.18%, 2,637.72
Nasdaq, +0.74%, 7,020.52
Nikkei Futures, -2.12%, 21,219.50  

CURRENCY MARKET WRAP 

• U.S. JOLTS Job Openings at 7.08M vs expected 7.22M. The 2-yr yield added two basis points to 2.72%, and the 10-yr yield added one basis point to 2.86%. The U.S. Dollar Index climbed 0.7% to 97.20, benefiting largely at the expense of Sterling, which dropped -1.25% against the Dollar as news of the delayed vote on the UK-EU Brexit plan stirred angst about the future of leadership in the UK and the specter of a messy “no deal” Brexit.
• In Europe, the continuing protests in France are beginning to worry investors, as the continent’s second-largest economy is in danger of seeing a sharp slowdown in activity as a result of the unrest over the past few weeks. What started out as a protest against carbon taxes has morphed into a general protest movement that threatens the political status of Emmanuel Macron. Macron tried to reassert control over a nation wrecked by increasingly violent protests with offers of tax relief for struggling workers and pensioners, and an exceptional admission on Monday that “I might have hurt people with my words.” Even as Macron broke his silence on the protests in a brief televised address, yellow-vested demonstrators vowed to keep up the pressure on a man they see as arrogant, out-of-touch and “president of the rich.” IMF head Christine Lagarde noted over the weekend that she was certain that the protests would have an economic impact.
• U.K. GDP m/m inline at 0.10%. Manufacturing Production m/m at -0.9% vs expected 0.0%. In Brexit, it wasn’t surprising news since it had been speculated before the open that PM May was likely going to announce today a delay in the vote. It was also reported that the vote would have likely been defeated had it been held on Tuesday. Nevertheless, the announcement crystallized the uncertainty surrounding the Brexit matter, which left it akin to pouring fuel on a fire of uncertainty among a host of other issues that have been weighing on investor sentiment and stock prices.

STOCK MARKET WRAP 

• The S&P 500 gained 0.18% on Monday in what was yet another volatile day of trading on Wall Street. The benchmark index overcame a loss of -1.9% intraday despite the uncertainty surrounding trade, growth prospects, the path of interest rates, and geopolitics. The major indices fell to session lows shortly after UK Prime Minster Theresa May announced she will be delaying the vote in Parliament originally scheduled for Tuesday on the UK-EU Brexit plan.Monday’s decline also extended the financial sector’s position as the worst-performing group this month with a loss of -8.4%.
• Notable laggards included Wells Fargo (WFC 48.80, -1.46, -2.9%) and Bank of America (BAC 24.76, -0.67, -2.6%). Within the S&P 500, the information technology (+1.4%) and communication services (+0.7%) outperformed to help lift the broader market from its early struggles. Semiconductor stocks helped lead the tech sector rebound effort.  The Philadelphia Semiconductor Index climbed 1.4% with Broadcom (AVGO 239.25, +10.69, +4.5%) extending its post-earnings gains from Friday.  Facebook (FB 141.85, +4.43, +3.2%), meanwhile, carried the communication services sector following an announcement after Friday’s close that it will be boosting its share buyback authorization by $9 billion.