It was another “good news is bad news” trade with better-than-expected labor market reports boosting fears over a higher for longer stance from the FOMC. Hawkish Fedspeak Additional To the Selloffs In stocks and bonds, but supported the Dollar. Wall Street closed over -1.0% in the red and just off the day’s lows. Treasury Get the best yields The curve reversed further, to -74.2bps versus 67.2bps Wednesday. This is the highest since December 15. As we head into today’s nonfarm payroll report, Fed policy changes remain a key driver of the market.
- The USD Index Jump above 105.00 And holds.
- EUR – back to 1.0500 bottom. German manufacturing orders dropped by -5.3% m/m during November German retail sales increased 1.1% m/m during November Black Friday sales in Germany are relatively new and result in less than expected.
- JPY – has lifted to 134.20.
- GBP – Under pressure 1.1890.
- Stocks – The US100 With the. US500 -1.16%; the US30 off: -1.02% Nearly all the S&P 500 sectors were in the red with the exception of energy. AAPL -1.06%, MSFT -2.96% & AMZN -2.37%.
- USOil – At $73.80. The virus developments have remained the focus of attention and there is still speculation about China’s…