Morning Note: A round-up of market news.
Market News
The US dollar rose after President-elect Trump threatened to implement 100% tariffs on countries which support an alternative to the greenback. The 10-year Treasury yields 4.21%, while gold slipped to $2,630 an ounce. Consolidation in the gold mining sector continued with the announcement of a $3.2bn deal between two of Australia’s largest operators: Northern Star Resources and De Grey Mining.
US equities ended last week on a positive note, with the S&P 500 notching fresh record highs. The Biden administration will restrict exports to 140 Chinese companies in its latest efforts to hit China’s chip industry, Reuters reported.
In Asia this morning, the renminbi fell to a 4-month low versus the dollar. 10-year Chinese government bond yields fell below 2% on bets the PBOC will ease monetary policy further to support the economy. Equity markets rose: Nikkei 225 (+0.8%); Hang Seng (+0.6%); Shanghai Composite (+1.1%).
The FTSE 100 is currently little changed at 8,287. UK house prices rose by 3.7% in November, the fastest pace in two years and ahead of market expectations. The Nationwide survey leaves the average home cost just 1% below the all-time high set in 2022. Sterling trades at $1.2685 and €1.2080.
Political tension continues in France as the head of the far-right RN Party threatened to bring down the government amid a stand-off over the nation’s budget. The euro weakened.
Brent Crude moved up to $72.40 a barrel, while Asian nuclear shares rallied after European power announcements.
Source: Bloomberg