As expected, it was a huge day for global financial markets yesterday with big moves across all the products. US stocks surged higher at the end of the day as the market got confirmation from the Fed that rate cuts are imminent and prior to this we had a rate rise from the Bank of Japan that ultimately led to another big increase in the Yen.
US Treasury yields were only slightly lower on the day, but they had been moving south in the prior sessions in anticipation of the Fed’s update, the dollar dropped off 0.3%, but the big story for FX was in the Yen.
Oil prices flew higher as a leading Hamas member was assassinated in the middle east, with WTI seeing its biggest 1-day increase since October 2023 and Gold pushed nearly 1% higher.
It is set to be another busy day for traders today as the market digests all the fresh inputs from yesterday’s sessions and then looks at a key interest rate decision from the Bank of England and further tier 1 US data updates. We also have key earnings reports due out from some big players in the US later today, including both Apple and Amazon.
| Market | Change | Close |
| Dow | +0.95% | 41,129 |
| S&P | +1.95% | 5,542 |
| Nasdaq | +2.88% | 17,641 |
| USD | -0.3% | 104.11 |
| US Treasury – 2 Year | -1.1 bps | 4.348% |
| US Treasury – 10 Year | -3.2 bps | 4.109% |
| Oil – Brent | +2.66% | $80.72 |
| Oil – WTI | +4.26% | $77.91 |
| Gold | +0.94% | $2,430 |
Today’s Events:
European Session
- Switzerland – Bank Holiday
- 9.00 pm – UK – Bank of England Rate Decision, Policy Summary and Policy Report
- 9.30 pm – UK – Bank of England Press Conference
US Session
- 10.30 pm – US – Weekly Unemployment Claims Data
- 12.00 am – US – ISM Manufacturing PMI Data
- 2.15 am – UK – MPC Member Huw Pill Speaks
