CURRENCY MARKET WRAP
As of Thu 9 Jan, Singapore Time zone UTC+8
U.S. Dollar Index, +0.32%, 97.31
USDJPY, +0.55%, $109.04
EURUSD, -0.36%, $1.1113
GBPUSD, -0.15%, $1.3105
USDCAD, +0.24%, $1.3037
AUDUSD, +0.07%, $0.6876
NZDUSD, +0.18%, $0.6654
S&P 500 (+0.49%) set a new high on Wednesday, as investors were relieved to hear that the situation in Iran may not escalate militarily beyond the actions taken by Iran last night. Iran fired more than a dozen ballistic missiles against U.S. and coalition forces in Iraq, which immediately sent equity futures down more than 1.5%. The reaction was short-lived upon details that it resulted in no American casualties and Tehran said it did not seek escalation or war. Trump told the nation in a press conference that he will be imposing additional sanctions on Iran, implicating that economic countermeasures will be favored over military ones.
U.S. ADP Employment Change Report showed an estimated 202,000 positions were added to private sector payrolls in December (consensus 155,000) on top of an upwardly revised 124,000 (from 67,000) in November.
U.S. Treasuries declined alongside the advance in equities, driving yields higher across the curve. The 2-yr yield rose four basis points to 1.58%, and the 10-yr yield rose five basis points to 1.87%. The U.S. Dollar Index increased 0.32% to 97.31. Gold futures fell 0.9% to $1560.50/ozt.
STOCK MARKET WRAP
S&P500, +0.49%, 3,253.05
Nasdaq, +0.67%, 9,129.24
Nikkei Futures, +0.22%, 23,532.5
The information technology (+1.0%) and communication services (+0.7%) sectors outperformed, while the energy sector (-1.7%) fell behind amid a retreat in oil prices ($59.62, -3.06, -4.9%). WTI crude futures dropped below $60/bbl following bearish inventory data and receding concerns about production disruptions.
Stock laggards included Boeing (BA 331.37, -5.91, -1.8%) after a 737-800 jetliner crashed shortly after takeoff in Tehran, killing all 176 passengers on board, and Walgreens Boots Alliance (WBA 55.83, -3.46, -5.8%) after it missed earnings estimates.
Positive corporate news came out of Macy’s (M 18.10, +0.43, +2.4%), which reported better than feared holiday sales, and Constellation Brands (STZ 190.29, +6.69, +3.6%), which beat top and bottom-line estimates.