Daily Market Brief

December 26th 2023

FOREIGN EXCHANGE MARKETS

(Sources: Bloomberg / Reuters)

EURUSD

The EUR/USD is trading higher after an initial reversal following mixed US data. The pair remains steady at fresh four-month highs above 1.1010 at Friday's (US) session opening, with the Dollar weighed by the weak US Personal Consumption Expenditures (PCE) Prices Index and Personal Spending data. The Pair spiked lower immediately after the data release, as the better-than-expected US Durable Goods orders report provided an initial boost to the Dollar.

GBPUSD

The GBP/USD extends its recovery on Friday, supported by upbeat UK Retail Sales data for November. The Office for National Statistics (ONS) reported that households' retail spending surprisingly remained positive compared with the previous year, while market participants projected a sharp decline. Strong Retail Sales were boosted by a 2.8% increase in non-food retail stores as major discounts were offered amid the Black Friday Sale.

USDJPY

The Yen saw an early bump on Friday after Japanese National Consumer Price Index (CPI) Inflation printed more or less as-expected, with Core Japan CPI (headline CPI less fresh food prices) for the year through November meeting market forecasts of 2.5% versus the previous print of 2.9%.

INTERNATIONAL EQUITY MARKETS

(Sources: Bloomberg / Reuters)

UNITED STATES OF AMERICA

U.S. stocks gyrated to a mixed close on Friday as investors headed into the Christmas holiday weekend, having digested cooler-than-expected inflation data which firmed bets for Federal Reserve interest rate cuts in the new year. Nike dives after annual sales forecast cut.

EUROPE

European stocks closed with a whimper on Friday, as softer-than-expected U.S. inflation data offset losses in sportwear makers and China-exposed stocks ahead of the Christmas holiday weekend. Prosus, Ubisoft drop on China's curb on gaming spend.

ASIA

Asian stocks traded tentatively on Tuesday, while the dollar lurked near a five- month low as cooling U.S. inflation bolstered bets the Federal Reserve would cut interest rates soon.

MUST READ

(Source: Bloomberg/ Forexlive)

Hedge funds bet most against Canadian dollar in almost five years

Speculators are ramping up their bearish wagers on Canada's dollar, lifting net short positions to the highest in nearly five years, according to a report from the Commodity Futures Trading Commission. Leveraged funds boosted their wager against the loonie to 51,971 contracts in the week ended Dec. 19, the highest since January 2019 and up from 37,707 contracts the week before, according to the data. "The Canadian dollar short base is still substantial as inflation remains stubborn and growth lackluster" said BirdEechtel global head offoreign exchange, at short the pro-cyclicalG-10 commodity currencies all year, including the Australian dollar, Norwegian krone and the Canadian dollar.!" The loonie has lagged its Group-of-10 peers this quarter. The Canadian economy unexpectedly shrank in the third quarter and is on track to only narrowly avoid a second straight quarter of declines. Nonetheless, Bank of Canada Governor Tiff Macklem has said policymakers still need evidence of inflation easing to start thinking about rate reductions.

Fx rates

Last

High

Low

% Daily

% Weekly

% YTD

EUR-USD

1.1025

1.1029

1.1010

0.15

0.40

2.99

GBP-USD

1.2705

1.2713

1.2688

0.12

-0.21

5.15

USD-JPY

142.22

142.37

142.10

-0.09

1.14

-7.80

USD-CHF

0.8545

0.8566

0.8543

-0.02

0.75

8.19

Commodities

Last

High

Low

% Daily

% Weekly

% YTD

Silver

24.39

24.40

24.34

0.82

2.45

1.81

Crude Oil

73.73

73.94

73.45

0.23

1.25

-3.37

Bitcoin

42756.75

43740.99

42570.01

-1.78

-2.84

158.51

Etherium

2233.89

2275.62

2221.29

-1.68

-0.66

86.26

Period

1 M

3 M

12 M

SOFR

5.36

5.35

4.80

Notes/Bonds

2 Y

10 Y

30 Y

US

4.33

3.88

4.03

BTP - BUND

0.52

1.58

1.98

GILTS

4.06

3.51

4.07

Index

Close

% Daily

% M

YTD

Futures

% Change

S&P

4754.63

0.17

4.28

23.83

4811.75

0.14

Nasdaq

14992.97

0.19

5.21

43.25

17026.50

0.28

DJ EuroStoxx50

4521.47

-0.07

3.42

19.19

4557.00

#N/A N/A

FTSE 100

7697.51

0.04

2.80

3.30

7732.00

#N/A N/A

CAC 40

7568.82

-0.03

3.78

16.92

N/A Real Tim

N/A

DAX

16706.18

0.11

4.22

19.98

16891.00

#N/A N/A

IBEX 35

10111.90

0.08

1.74

22.88

N/A Real Tim

N/A

FTSE MIB

30353.29

0.26

3.13

28.04

N/A Real Tim

N/A

Nikkei

33305.85

0.16

-0.95

27.64

33220.00

0.06

Hang Seng

16340.41

-1.69

-6.94

-17.40

16353.00

0.00

DFM General

4018.14

0.23

0.89

20.73

N/A

N/A

MSCI Tadawoul

11813.09

1.05

6.52

12.74

N/A

N/A

PRIOR_CLOSE_MID

CHG_PC CHG_PC CHG_PCT_

Leb. Mrkts

Closing Px

High

Low

% Daily

% Weekly

YTD

Solidere B

86.35

89.00

83.00

-2.32

15.44

43.08

MAIN WEEKLY EARNINGS

Company

Ticker

Market Cap

Date

Time

Estimate

Year Ago

Unifirst Corporatio

UNF US

$3.4 B

03-Jan-23

Pre-mkt

2.33

2.21

Walgreens Boots

WBA US

$22.5 B

04-Jan-23

Pre-mkt

0.66

1.16

ConAgra Brands

CAG US

$13.6 B

04-Jan-23

Pre-mkt

0.67

0.81

RPM Internationa

RPM US

$14.3 B

04-Jan-23

Pre-mkt

1.23

1.10

Commercial Meta

CMC US

$5.8 B

08-Jan-23

Pre-mkt

1.42

2.24

ECONOMIC CALENDAR

(26-12-23) US- Housing Price Index MoM OCT

(27-12-23) CH- ZEW Survey - Expectations DEC

(28-12-23) US- Pending Home Sales MoM NOV

(28-12-23) US- Initial Jobless Claims DEC

(29-12-23) US- Chicago Purchasing Manager's Index DEC

(29-12-23) CH- KOF Leading Indicator DEC

(29-12-23) US- CFTC NC Net Positions

CONTACT

Banque BEMO sal

Asset Management Unit

Ashrafieh, Elias Sarkis Ave., BEMO Bldg, 4th Floor P.O.Box 16-6353 Beirut, Lebanon

Tel: +961 1 325405/6/7/9

Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be reliable, but we do not guarantee or accept responsibility for its completeness and accuracy. This document should not be construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. The investment risks described herein are not purported to be exhaustive, any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Investment, Capital Market and Treasury products are subject to Investment risk, including possible loss of principal amount invested. Past performance is not indicative of future results: prices can go up or down. Investors investing in investments and/or treasury products denominated in foreign (non-local) currency should be aware of the risk of exchange rate fluctuations that may cause loss of principal when foreign currency is converted to the investor's home currency. Client understands that it is his/her responsibility to seek legal and/or tax advice regarding the legal and tax consequences of his/her investment transactions. The consequences of any action taken on the basis of finformation contained herein are solely the responsibility of the recipient.

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Banque Bemo SAL published this content on 26 December 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 December 2023 09:21:39 UTC.