Market Brief: Buck Rallies Back, US Stocks Tick Lower

See a summary of the top market themes and trends from today's US trading session!

View our guide on how to interpret the FX Dashboard.

  • US data: The ISM Services PMI report printed at 55.0 vs. 54.5 expected. The employment subcomponent, a key leading indicator for Friday’s NFP report, came in at 55.2, down a touch from last month’s 55.5 reading. Separately, Factory Orders (Nov) fell -0.7% m/m vs. a -0.8% drop eyed. The November trade deficit came in at -$43.1B, roughly in-line with -$43.7B anticipated.
  • FX: The US dollar was the day’s strongest currency (though it remains below some key short-term resistance levels). The Australian dollar was the weakest major currency in risk-off trade.
  • Commodities: Oil shed -1% on the day as there were no new developments in the ongoing tensions between the US and Iran. Gold and silver ticked higher after early losses, while bitcoin surged 5% to break back above $8,000.
 
  • US indices closed modestly lower on the day. European indices were mixed, with rallies in Germany’s DAX and Italy’s MIB offsetting losses in the UK’s FTSE and Spain’s IBEX.
  • Materials (XLB) was the strongest major sector today; REITs (XLRE) were the weakest.
  • Stocks on the move:
    • Tesla (TSLA) rallied 4% after delivering its first vehicles made in China.
    • Micron Technology (MU) surged 9% on an upgrade from analysts at Cowen.


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