- US stocks advanced on Tuesday with broad-based gains as all indices closed higher, with the Russell and Equal Weight S&P outperforming. Sectors were also predominantly firmer with Health Care, Materials and Industrials leading the advances, while Energy and Communication Services were lower. NVIDIA (NVDA) closed in the red despite some optimistic commentary from the CEO and CFO, but with weakness still attributed to uncertainty around H200 China orders being approved. Energy stocks tracked crude prices lower, giving up some of Monday’s gains in what has been a volatile start to the year for crude, with recent downside stemming from optimism surrounding Russia/Ukraine peace following a positive meeting on security guarantees between the US, EU and Ukraine, although we are still awaiting Russia’s response.
- USD clawed back initial losses and was supported by higher US Treasury yields, while newsflow in the FX space was fairly sparse on Tuesday, and the US S&P Global Services PMI was revised lower than expected. There were also comments from Fed’s Miran and Barkin in which the former reiterated his usual uber-dove tones, while the latter said that the current policy rate is within the range of neutral.
- Looking ahead, highlights include Australian CPI, Japanese December Final Services & Composite PMIs, Thailand CPI.
Source: