{"id":1445908,"date":"2023-12-26T13:25:15","date_gmt":"2023-12-26T18:25:15","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1445908"},"modified":"2023-12-26T13:25:15","modified_gmt":"2023-12-26T18:25:15","slug":"futures-oil-rise-in-thin-post-holiday-trading","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/futures-oil-rise-in-thin-post-holiday-trading\/1445908\/","title":{"rendered":"Futures, Oil Rise In Thin Post-Holiday Trading"},"content":{"rendered":"

Futures, Oil Rise In Thin Post-Holiday Trading<\/span><\/p>\n

\n

The Santa rally grinds on, with US equity futures edging modestly higher in very thin volumes while interest yields were flat as trading resumed after the Christmas holiday amid growing expectations for earlier and deep interest rate cuts next year which supposedly will prevent a recession from materializing. As of 8:00am, S&P futures rose 0.1% while Nasdaq 100 futs gained 0.2%. Most European markets are closed, while Asian stocks are mixed in a thin trading session with markets including Hong Kong, New Zealand and Australia also shut. The dollar was little changed while bitcoin slumped during its now traditional Asian session meltdown.<\/p>\n

<\/a><\/p>\n

A flurry of deal news around the holiday lifted shares of some US-listed companies, including English football club\u00a0Manchester United, which rose 3.9% – trimming an earlier double-digit gain – after Jim Ratcliffe agreed to buy a 25% stake\u00a0in the club, valuing it at about $5.4 billion.\u00a0 Elsewhere in deal news,\u00a0Hollysys Automation Technologies Ltd.\u00a0climbed 6.6% in the US after a group led by Dazheng Group made an improved offer to acquire the company for $1.8 billion, seeking to thwart its sale to private equity firm Ascendent Capital Partners. And 3D printer maker Stratasys Ltd.\u00a0jumped\u00a011% after confirming it received unsolicited cash offer from Nano Dimensions Ltd. that values the company at $1.1 billion. Here are some other notable premarket movers:<\/p>\n

Gracell Biotechnologies ADRs climb 58% after the China-based developer of cell therapies said it\u2019s to be acquired by AstraZeneca for $2 per ordinary share in cash plus non-tradable contingent value right, according to a statement.
\n\tUS-listed shares of Bilibili rise 2.1% while NetEase gains 2.5%, after China approved 105 domestic online games, according to a statement from the National Press and Publication Administration.
\n\tZIM Integrated Shipping (ZIM) falls 7.2% after Maersk said it\u2019s preparing to resume shipping through the Red Sea, thanks to a new multinational maritime task force to protect vessels from attacks by Houthi rebels from Yemen.<\/p>\n

Some on Wall Street are positioning for further stock gains ahead as the session kicked off the start of the \u201cSanta Claus rally\u201d \u2014 a seasonal trend where equities tend to climb into the first few days of the new year. The\u00a0S&P 500\u00a0notched an eight-week winning run on Friday \u2014 the longest in more than five years on signs price pressures in the US were easing. The Nasdaq is up over 50%, its best year since…1999.<\/p>\n

“As for emerging markets in Asia, \u2018silent night\u2019 says much, given that there isn\u2019t particularly inspired trading, with Wall Street equivocating ahead of Christmas,\u201d <\/strong>said\u00a0Vishnu Varathan, head of economics and strategy at Mizuho Bank. \u201cIt looks like a case of averting the China drag and hanging on to earlier Santa rallies being the best case for Boxing day – boxing in risks.\u201d<\/p>\n

Global markets have been buoyed in recent months as traders bet major central banks including the Federal Reserve will aggressively cut interest rates next year as inflation falls. Bond yields have tumbled while the S&P 500 is nearing a fresh record.<\/p>\n

Data\u00a0released last week showed signs of resilience in US growth while the Fed\u2019s\u00a0preferred\u00a0underlying inflation metric barely rose in November. Additional reports Friday showed consumers were also gaining conviction that inflation in the world\u2019s largest economy was on\u00a0the right track\u00a0despite a\u00a0bumpy\u00a0housing market recovery. That helped cement investor expectations for earlier and deeper interest rate cuts next year, despite\u00a0pushback from several\u00a0Fed policymakers.\u00a0Swaps traders\u00a0are betting interest rates will be eased by more than 150 basis points in 2024, double the Fed\u2019s forecast.<\/p>\n

European markets were closed for the Christmas holiday while stocks\u00a0in Asia were mixed in a thin trading session with markets including Hong Kong, New Zealand and Australia also shut. European markets were closed too. Stocks fell in mainland China, with the benchmark CSI 300 Index dropping for the first time in four sessions, as investor sentiment remains weak even after the authorities\u00a0softened\u00a0their stance following a move last week to tighten curbs on the videogame industry.<\/p>\n

Japan\u2019s auction of two-year sovereign debt saw\u00a0tepid\u00a0investor appetite, sending a gauge of demand to the weakest in a year, amid speculation the central bank will end negative interest rates in 2024. <\/strong>Its labor market remained relatively\u00a0tight\u00a0in November, keeping pressure on employers to boost wages in order to fill positions.<\/p>\n

The benchmark Topix index traded in a tight range, finishing the day up less than 0.1%, after Bank of Japan Governor Kazuo Ueda\u2019s speech on Monday that suggested he\u2019s in no hurry to end the ultra-easy monetary policy.<\/p>\n

\u201cWith the Nikkei 225 at high levels, year-end selling to lock in profits and losses is likely to weigh on the upside,\u201d says Hideyuki Ishiguro, senior strategist at Nomura Asset Management.<\/p>\n

In FX, the Bloomberg Dollar Spot\u00a0Index dropped 0.1% in thin trading. The EUR\/USD rises to hold above 1.10 while GBP\/USD fluctuates around 1.27. USD\/JPY consolidates above 142.\u00a0 Emerging Asian currencies\u00a0rose, with South Korea\u2019s won and Taiwan dollar leading gains against a dollar that fell to its lowest level in almost five months.\u00a0 The dollar is likely to remain \u201cunder pressure\u201d this week amid a lack of major economic data, according to\u00a0Win Thin, global head of currency strategy at Brown Brothers Harriman. \u201cEarly January will bring a slew of key economic data that calls the pivot into question.”\u00a0 Elsewhere, the Singapore dollar was little changed after core inflation edged\u00a0lower\u00a0in November, giving the central bank room to extend its monetary-policy pause next month to support the economy.<\/p>\n

In rates, treasuries are mixed in early US trading with many European bond markets closed. Treasury\u00a02-year yields rise 1bp to 4.33% while 10-year yield reversed an earlier drop of 2bps to trade unchanged at 3.90%. Yields remain within about 2bp of Friday\u2019s closing levels on first day of holiday-shortened week, with 10-year at 3.89%; it reached 3.827% last week, lowest since July, following downward revision to 3Q GDP. The yield curve is flatter as short end cheapens ahead of $57b 2-year note auction at 1pm New York time. The When Issued 2-year yield of 4.29% is lower than 2-year auction results since April and more than 50bp lower than November\u2019s sale following past month\u2019s collapse in yields unleashed by signals from Fed that no further rate hikes likely.<\/p>\n

In commodities, iron ore futures hit $140 a ton, highest in 18 months as traders keep a\u00a0close\u00a0eye on China\u2019s steel outlook for the next year.\u00a0Oil rose again after posting the largest weekly gain in more than two months, with shipping disruptions in the Red Sea in focus after a spate of Houthi attacks against vessels in the vital waterway.<\/p>\n

Geopolitical tensions still remain front of investors minds into the new year as tensions in the Middle East look set to increase. Iranian President Ebrahim Raisi said Israel will pay a price for killing a senior commander of its Revolutionary Guard in\u00a0air strike\u00a0in Damascus on Monday. The US accused Iran at the weekend of an\u00a0attack on a tanker\u00a0in the Indian Ocean.<\/p>\n

On the US calendar today, we get data including November Chicago Fed National Activity Index and December Philadelphia Fed Non-Manufacturing Activity (8:30am), October FHFA House Price Index and S&P CoreLogic CS home price gauges (9am) and December Dallas Fed Manufacturing Activity (10:30am). No Fed speakers are scheduled for remainder of year<\/p>\n

Market Snapshot<\/strong><\/p>\n

S&P 500 futures up 0.1% to 4,812.00
\n\tMXAP up 0.3% to 165.27
\n\tMXAPJ up 0.4% to 515.04
\n\tNikkei up 0.2% to 33,305.85
\n\tTopix little changed at 2,338.86
\n\tShanghai Composite down 0.7% to 2,898.88
\n\tSensex up 0.2% to 71,272.82
\n\tKospi up 0.1% to 2,602.59
\n\tBrent Futures little changed at $79.04\/bbl
\n\tGold spot up 0.4% to $2,061.82
\n\tU.S. Dollar Index little changed at 101.75
\n\tEuro little changed at $1.1012
\n\tBrent Futures little changed at $79.04\/bbl<\/p>\n

Top Overnight News <\/strong><\/p>\n

Japan\u2019s auction\u00a0of two-year sovereign debt saw tepid investor appetite, sending a gauge of demand to the weakest in a year, amid speculation the central bank will end negative interest rates in 2024.
\n\tJapan\u2019s labor market remained relatively\u00a0tight in November, keeping pressure on employers to boost pay in order to fill positions as companies prepare to engage in annual wage negotiations with unions.
\n\tIsraeli Prime Minister\u00a0Benjamin Netanyahu outlined three prerequisites to achieving peace in its war with Hamas: the destruction of the group, the demilitarization of Gaza and for Palestinian society to be \u201cderadicalized.\u201d
\n\tIron ore\u00a0rallied to its highest since June 2022, showing Beijing\u2019s efforts to stem the property market\u2019s decline in recent months may be paying dividends.
\n\tGold ticked higher as the\u00a0final week of the year got under way, with traders looking ahead to interest rate cuts from the Federal Reserve in 2024 and a weaker US currency.
\n\tAn abrupt surge in foreign\u00a0buying of Chinese bonds has raised hopes that pessimism about the nation\u2019s assets may be overdone. But it may be too early to celebrate.<\/p>\n

US Event Calendar<\/strong><\/p>\n

08:30: Dec. Philadelphia Fed Non-Manufactu, prior -11.0
\n\t08:30: Nov. Chicago Fed Nat Activity Index, prior -0.49
\n\t09:00: Oct. S&P\/Case-Shiller US HPI YoY, prior 3.93%
\n\t09:00: Oct. S&P CS Composite-20 YoY, est. 4.85%, prior 3.92%
\n\t09:00: Oct. S&P\/CS 20 City MoM SA, est. 0.60%, prior 0.67%
\n\t09:00: Oct. FHFA House Price Index MoM, est. 0.5%, prior 0.6%
\n\t10:30: Dec. Dallas Fed Manf. Activity, prior -19.9\n<\/p><\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 12\/26\/2023 – 08:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/futures-oil-rise-thin-post-holiday-session<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

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