View our guide on how to interpret the FX Dashboard.
- Markets assumed a clear risk-off posture following last night’s US missile strike in the Middle East, with safe haven assets in particular demand.
- The minutes from the December Federal Reserve meeting were mostly uninspiring, with officials suggesting that rates were likely to remain steady unless there was a material change in the underlying economic situation.
- US data: ISM Manufacturing PMI (Dec) printed at 47.2 vs. 49.0 eyed, the lowest reading since 2009. The Employment subcomponent fell to just 45.1, signaling a relatively sharp contraction in hiring in the sector. Separately, Construction Spending (Nov) rose 0.6% m/m, more than the 0.4% reading eyed.
- FX: The Japanese yen was the strongest major currency today, followed by the US dollar. The British pound was by far the weakest, falling by more than 1% against the day’s leading currencies.
- Commodities: Oil rallied more than 3% on the day, boosted by the turmoil in the Middle East and a surprise drawdown in inventories. Gold tacked on about 1.5% in a safe haven bid.
- US indices closed lower on the day, spooked by tensions in the Middle East.
- REITs (XLRE) were the strongest sector on the day, gaining more than 0.5%. Materials (XLB) was the weakest, falling by more than -1%.
- Stocks on the move:
- Aerospace and Defense names were the big movers, led by Northrop Grumman (NOC, +5%) and Lockheed Martin (LMT, +4%)
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.