Today's key market insights
US markets
Stocks were down on Monday for a fourth consecutive trading session due to concerns about an end-of-year sell-off and a potential recession in 2023.
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The week before Christmas often sees the “Santa Claus Rally,” but investors are still awaiting positive signals after negative stock movements this month, including the first back-to-back negative weeks in three months.
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So far this month, the Nasdaq is down 8%, S&P 500 has lost 6.4%, and the Dow has dropped 5.3%.
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The current 10 Year U.S. Treasury yield is set at 3.58640%.
| Market | Price | Move | ||
| 32,757.54 | -0.49% | ||
| S&P 500 | 3,817.66 | -0.90% | ||
| Nasdaq | 10,546.03 | -1.49% | ||
| Russell 2000 | 1,738.58 | -1.41% |
Canadian markets
Job vacancies in Canada were down in Q3 2022 after hitting a record high in Q2, according to new data released by Statistics Canada.
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There were 1.1 unemployed people in Q3 for each vacant job in the country, down from 2.3 unemployed people for each vacant job in Q1 2020.
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The job vacancy rate, which measures the number of vacant jobs proportional to the total amount of workers in the country, was 5.4%.
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There were 959,600 open jobs.
| Market | Price | Move |
| TSX | 19,200.76 | –1.25% |
European markets
European stocks were up on Monday, breaking away from the negative sentiment surrounding U.S. equities.
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The Stoxx 600 gained 0.25%, with all major sectors finishing positive on Monday.
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Oil and gas stocks led gains with a 1.7% increase.
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Volkswagen was the worst-performing stock, losing 10.6% on the day, after it was announced that Oliver Blume would be CEO of both Volkswagen and Porsche.
| Market | Price | Move | ||
| Euro STOXX 50 | 3,811.24 | 0.19% | ||
| UK (FTSE 100) | 7,361.31 | 0.40% | ||
| UK (FTSE 100) | 13,942.87 | 0.36% | ||
| 6,473.29 | 0.32% |
Asian markets
Stocks in Asia were down on Monday after the publication of negative news stories in multiple countries.
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The Shanghai Composite fell nearly 2% after it was announced that most schools in Shanghai would be closed due to COVID-19 surges.
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The Bank of Japan will announce its monetary policy decision later today and is expected to keep its current interest rates.
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.According to the World Economic Sales Managers Survey, business confidence in China has fallen to an all-time low. (The survey began tracking sentiment in 2013).
| Market | Price | Move | ||
| S&P Asia 50 | 4,436.44 | -0.07% | ||
| Japan (Nikkei 225) | 27,237.64 | -1.05% | ||
| South Korea (KOSPI) | 2,352.17 | -0.33% | ||
| China (Hang Seng) |
| -0.50% | ||
| India (SENSEX) | 61,806.19 | 0.76% |
Commodities
Oil prices rose on Monday amid expectations that China will further relax COVID-19 restrictions after Beijing reiterated its commitment to economic growth in 2023.
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The government said it expects three COVID-19 waves, including the current one, but that it will step in to provide support for the economy next year.
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Brent gained 1% and U.S. West Texas Intermediate crude rose 1.6% on Monday.
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The U.S. Energy Department on Friday said it will start restocking the Strategic Petroleum Reserve, which is putting upward pressure on prices.
| Market | Price | Move |
| Oil (NYSEARCA:OIL) | 28.76 | 2.13% |
| Gold (NYSEARCA:GLD) | 166.32 | -0.28% |
| Silver (NYSEARCA:SLV) | 21.12 | -1.17% |
| Corn (NYSEARCA:CORN) | 25.85 | -0.81% |
| Lumber (NASDAQ:WOOD) | 72.43 | -0.90% |
Currency exchange rates
The U.S. Dollar was down on Monday as investors took more of a risk-on approach and backed higher-risk currencies.
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New Zealand and Australian Dollars, both of which are considered higher-risk, were up on the day.
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The Rand in South Africa gained 2% after President Cyril Ramaphosa was re-elected as head of the ruling party.
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The Japanese Yen lost ground against the U.S. Dollar ahead of the Bank of Japan’s interest rate decision today.
| Market | Price | Move |
| UK(GBP) | £0.82 | -0.07% |
| Europe (EURO) | €0.94 | -0.14% |
| Canada (Canadian Dollar) | $1.36 | -0.75% |
| Japan (Yen) | ¥136.86 | 0.11% |
Cryptocurrency
Binance US has agreed to purchase Voyager Digital’s assets for $1.022B.
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Binance.US will make a good faith deposit of $10M and reimburse Voyager $15M for expenses that occurred during the acquisition process.
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Voyager had previously agreed to sell its assets to FTX for $1.4B.
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The bankruptcy court in charge of the FTX collapse still needs to approve the purchase. A hearing is set for Jan. 5.
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Filecoin has lost 28% in the last five days after long positions in the token worth a total of $5.7M were liquidated last week.
| Market | Price | Move |
| Bitcoin | $16,419.20 | -2.16% |
| Ethereum | $1,166.64 | -1.41% |
| Litecoin | 63.00 | -2.22% |
| Bitcoin Cash | $98.75 | -4.14% |
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Author
Chris Svorcik
Elite CurrenSea
Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.
