Summary of the Day (December 3, 2024)
---
Geopolitical Events
- South Korea:
- South Korean President Yoon declared martial law early in the day, citing opposition party obstructionism. This prompted significant political and market instability, including a sharp weakening of the Korean Won (KRW).
- By the afternoon, the South Korean Parliament voted to block the martial law decree. President Yoon agreed to lift the order following the parliamentary decision, helping to stabilize markets. Emergency meetings by the Bank of Korea and Finance Ministry signaled plans for unlimited liquidity support if needed.
- The geopolitical turmoil underscored market risk in South Korea, with international investors remaining wary.
- United States:
- Political developments included the Trump transition team working with the Justice Department on personnel vetting for national security roles, alongside continued monitoring of South Korea’s political crisis by the Biden administration.
- The Federal Reserve continued its data-driven approach to monetary policy, with discussions on a potential December rate cut.
- France:
- Political uncertainty loomed, with President Macron defending his leadership amid budgetary tensions, and a no-confidence motion scheduled for December 4.
- China:
- Continued tensions with the US over chip export controls and strategic minerals (germanium and gallium) created friction. The PBOC engaged in significant market operations, injecting liquidity into the system.
---
Market Highlights
- Equities:
- The S&P 500 showed minor gains, marking its 55th record close of the year, driven by a resilient rally despite global uncertainties. Nasdaq also closed slightly higher, continuing its tech-driven momentum.
- Salesforce (
CRM) reported mixed Q3 earnings, with revenue beating estimates but earnings-per-share falling short.
- Commodities:
- Oil prices climbed, with Brent crude settling at 773.62/BBL (+2.49%) and WTI crude at 669.94/BBL, amid expectations of OPEC+ maintaining output cuts.
- Natural gas futures saw modest gains, while refined products like gasoline and diesel followed crude's upward trajectory.
- Forex:
- The KRW was volatile due to political developments, recovering slightly after the martial law repeal.
- The US Dollar saw mixed performance, gaining against some currencies like the Chinese Yuan (CNY) but losing ground to the Euro, which recovered from earlier losses tied to French political turmoil.
---
Macroeconomic Data
- United States:
- Job openings in October surpassed expectations, reflecting labor market stability. Investors eyed upcoming payroll data and Fed commentary on potential December policy shifts.
- API stock reports showed unexpected increases in crude oil (+1.23M barrels) and gasoline inventories, signaling potential bearish trends in energy markets.
- Europe:
- European Central Bank (ECB) officials suggested a cautious approach to rate cuts, emphasizing data dependence. Eurozone growth remained sluggish, with officials warning of long-term structural challenges.
- Asia-Pacific:
- Australia reported modest improvements in PMI figures, signaling an economic recovery. However, the country posted a larger-than-expected current account deficit in Q3.
- South Korea’s inflation figures for November missed estimates, with CPI MoM at -0.3%, reflecting deflationary pressures.
---
Investor Sentiment
- Market sentiment fluctuated throughout the day, with extreme volatility in South Korea overshadowing relatively stable US equity performance. Fear and Greed Index values for cryptocurrencies (76/100) and broader markets (61/100) indicated high optimism but flagged potential for corrections in overbought sectors.
---
This comprehensive overview underscores the interconnectedness of geopolitical risks, economic data, and market movements throughout the day.
---
Geopolitical Events
- South Korea:
- South Korean President Yoon declared martial law early in the day, citing opposition party obstructionism. This prompted significant political and market instability, including a sharp weakening of the Korean Won (KRW).
- By the afternoon, the South Korean Parliament voted to block the martial law decree. President Yoon agreed to lift the order following the parliamentary decision, helping to stabilize markets. Emergency meetings by the Bank of Korea and Finance Ministry signaled plans for unlimited liquidity support if needed.
- The geopolitical turmoil underscored market risk in South Korea, with international investors remaining wary.
- United States:
- Political developments included the Trump transition team working with the Justice Department on personnel vetting for national security roles, alongside continued monitoring of South Korea’s political crisis by the Biden administration.
- The Federal Reserve continued its data-driven approach to monetary policy, with discussions on a potential December rate cut.
- France:
- Political uncertainty loomed, with President Macron defending his leadership amid budgetary tensions, and a no-confidence motion scheduled for December 4.
- China:
- Continued tensions with the US over chip export controls and strategic minerals (germanium and gallium) created friction. The PBOC engaged in significant market operations, injecting liquidity into the system.
---
Market Highlights
- Equities:
- The S&P 500 showed minor gains, marking its 55th record close of the year, driven by a resilient rally despite global uncertainties. Nasdaq also closed slightly higher, continuing its tech-driven momentum.
- Salesforce (
CRM) reported mixed Q3 earnings, with revenue beating estimates but earnings-per-share falling short.- Commodities:
- Oil prices climbed, with Brent crude settling at 773.62/BBL (+2.49%) and WTI crude at 669.94/BBL, amid expectations of OPEC+ maintaining output cuts.
- Natural gas futures saw modest gains, while refined products like gasoline and diesel followed crude's upward trajectory.
- Forex:
- The KRW was volatile due to political developments, recovering slightly after the martial law repeal.
- The US Dollar saw mixed performance, gaining against some currencies like the Chinese Yuan (CNY) but losing ground to the Euro, which recovered from earlier losses tied to French political turmoil.
---
Macroeconomic Data
- United States:
- Job openings in October surpassed expectations, reflecting labor market stability. Investors eyed upcoming payroll data and Fed commentary on potential December policy shifts.
- API stock reports showed unexpected increases in crude oil (+1.23M barrels) and gasoline inventories, signaling potential bearish trends in energy markets.
- Europe:
- European Central Bank (ECB) officials suggested a cautious approach to rate cuts, emphasizing data dependence. Eurozone growth remained sluggish, with officials warning of long-term structural challenges.
- Asia-Pacific:
- Australia reported modest improvements in PMI figures, signaling an economic recovery. However, the country posted a larger-than-expected current account deficit in Q3.
- South Korea’s inflation figures for November missed estimates, with CPI MoM at -0.3%, reflecting deflationary pressures.
---
Investor Sentiment
- Market sentiment fluctuated throughout the day, with extreme volatility in South Korea overshadowing relatively stable US equity performance. Fear and Greed Index values for cryptocurrencies (76/100) and broader markets (61/100) indicated high optimism but flagged potential for corrections in overbought sectors.
---
This comprehensive overview underscores the interconnectedness of geopolitical risks, economic data, and market movements throughout the day.
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
💲 To keep up to date with all my activities I invite you to visit my Telegram 💲
💲 t.me/Investmatez 💲
🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌🌌
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.