IC Markets Global: Daily market analysis(2024-02-06)

Wall Street Stock Market Decline – The Dow Jones index is down0.7%
Yesterday, as investors digested more strong US data and a staunch Fed chairman opposed the upcoming interest rate cut, the US stock market fell from its recent high. The Dow Jones index led the decline at the close, falling0.71%Next is the S&P index, which is down0.32%The Nasdaq index also fell0.20%, becauseISMThe Service Industry Purchasing Managers Index data is higher than expected, and Jerome Powell stated that the Federal Reserve needs more evidence of downward inflation in order to lower interest rates. The yield of US treasury bond bonds rose again,10Annual increase13Basis points,2Annual increase10Basis points, closing separately4.16%and1.47%. The US dollar has strengthened against most major currencies,DxyThe index is rising again0.36%The euro fell to11The level since mid month. Due to geopolitical tensions, oil prices have risen by approximately1%，goldFalling again.

The King of the Stock Market
Yesterday, as data once again confirmed the resilience of the US economy, Federal Reserve Chairman Jerome Powell postponed market expectations for short-term interest rate cuts, causing the US stock market to lose its upward momentum. In the past few weeks, the market has had to significantly adjust its view on the Fed's interest rate cut, and currently the market only15%The probability of a rate cut in March is almost certain at the beginning of the year. Friday's strong employment data once again proves that strongISMThe Purchasing Managers' Index data for the service industry showed last night that the Fed's remarks about "maintaining high interest rates for a longer period of time" further dampened market expectations for rate cuts, and investors are now evaluating what this means for the latest upward trend in the stock market. last year12The last wave of increase in the month is largely attributed to the Fed's stance on interest rates, so many now believe that in order to align the level with the Fed's expectations, the entire market should undergo a round of adjustment.

The Federal Reserve of Australia is the focus of attention for traders today
The Asian market is expected to digest more strong US data in the US stock market and open lower due to the overnight decline. In the middle of the trading day, the focus will quickly shift to Australia, as the Federal Reserve Bank of Australia will become the focus of the latest monetary policy decisions. It is expected that a decision will be made to remain unchanged, but the guidance provided again in the statement and press conference may affect the trend of Australian dollar products. There is a relative lack of data release during the European period, although GBP traders will closely monitor the UK's construction PMI data, while CAD traders will be cautious during the US periodIveyPurchasing Managers Index data and speech by Bank of Canada Governor Steve McClem. We will also hear about the Federal Reserve system on that day(FOMC)Speech by member Loretta Mester, who will deliver a speech in Columbus, Ohio.

IC Markets Global Chinese team