Slower rate hike pinned down U.S stock futures and gold prices. Protests against Covid-19 curbs in china dented oil prices and the yuan. Doge got the spotlight.

Updated time: 06 Dec, 2022, 07:22 (UTC+04:00)

Stocks:

After holidays, U.S stock futures ended lower amid optimism over smaller Fed rate hikes. Dow Jones futures, S&P 500 futures and Nasdaq futures moved down 0.2-0.4%. The focus of the week would lie on fresh speeches from FOMC members, CB consumer confidence and other key economic data.

Slower rate hike pinned down U.S stock futures and gold prices. Protests against Covid-19 curbs in china dented oil prices and the yuan. Doge got the spotlight.

Asian stocks dropped sharply led by those in the China-linked markets as concerns related to stricter COVID-19 curbs in the world’s second-largest economy. Hong Kong’s Hang Seng Index lost 4.16%, China’s CSI300 Index gave up 2.22% and MSCI's broadest index of Asia-Pacific shares outside Japan slumped 2.2%.

Commodities:

Oil prices witnessed significant losses, reaching a near 11-month low as exploding protests against COVID-19 restrictions in China pressured demand as well as raised fears of economic disruption. Adding to the concerns, EU’s price cap on Russian and upcoming OPEC+ meeting also worried the market for more production cuts. Brent crude futures fell 1.2% to $82.62 while U.S WTI crude futures slid 1.4% to $75.19, on per barrel. 

Gold prices saw mild backwardation since the market still looked forward to the U.S monetary policy’s signals from weekly economic data, not even mentioning the role of a stronger dollar. Both spot gold and gold futures dropped 0.2% to $1,752.08 and $1,751.85 an ounce.

Currencies: 

The dollar rose to a safe-haven position as protests against COVID-19 regulations in China fueled anxiety and negative sentiment. Despite off its most recent low of 105.30, the U.S dollar index was down 0.08% at 106.25. Offshore yuan dropped 0.76% to $7.2456. Kiwi and Aussie also moved in a similar pattern, falling to $0.6216 and $0.6714 respectively. Both the euro and sterling retreated 0.2% to $1.0377 and $1.2060. Yen stood at $139.27, down roughly 0.1%.   

Cryptocurrencies:

The quiet crypto market on holiday weekend finally saw some sparks as DOGE made some noise. Meanwhile, Bitcoin and Ethereum traded sideways to stay above $16,000 for the former and below $1,200 for the latter. Only DOGE soared more than 16% over the past 24 hours and was up more than 50% since last Tuesday

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