US Treasury bonds saw a decline as markets retraced the significant gains from last week, with an upcoming batch of data set to gauge whether expectations of interest-rate cuts are justified. Last week’s notable rally saw a subsequent pullback, coinciding with Bitcoin’s surge past $41,000 and gold touching an all-time high briefly.
The 10-year Treasury yield increased by five basis points to hit 4.25% in anticipation of crucial data regarding the US labor market. Gold, which surpassed $2,130 an ounce, later retracted from its peak. Additionally, US equity futures dipped, while European stocks stabilized after the previous week’s fluctuations.
Investors are eyeing an array of economic reports this week, particularly focused on revealing the condition of the US labor market. These reports will provide insights into whether markets prematurely anticipated softer economic conditions, potentially leading the Federal Reserve to consider rate cuts.
The week’s key data includes the release of US job openings (JOLTS) for October, ADP’s National Employment Report, and non-farm payrolls data later in the week. Gold slid from its high, trading at around $2,063 an ounce, while Bitcoin surged past $41,000, marking its highest level since April 2022.
Standard Chartered Bank’s Eric Robertsen expressed confidence that gold would stay supported over the coming weeks as long as prevailing rate conditions remained stable, stating this sentiment on Bloomberg Television.
Other events expected this week encompass various economic indicators globally, including central bank meetings, economic reports from Japan, China, Eurozone, Australia, and the US, impacting markets across stocks, currencies, cryptocurrencies, bonds, and commodities.
Here are some notable moves in the market:
Stocks:
- Stoxx Europe 600 remained largely unchanged
- S&P 500, Nasdaq 100, Dow Jones futures experienced slight declines
- MSCI Asia Pacific and Emerging Markets Indices saw little change
Currencies:
- Bloomberg Dollar Spot Index rose
- Euro, Japanese yen, offshore yuan, British pound experienced declines
Cryptocurrencies:
- Bitcoin rose to $41,686.58
- Ether rose to $2,257.38
Bonds:
- 10-year Treasury yield rose to 4.24%
- Germany’s and Britain’s 10-year yields remained relatively stable
Commodities:
- Brent crude fell to $77.83 a barrel
- Spot gold slightly decreased to $2,069.37 an ounce
