The US dollar strengthened slightly and US Treasury bonds pared earlier gains after disappointing US jobs data proved insufficient to convince the market that the Fed would soon cut interest rates again. The dollar strengthened against G10 currencies, most notably against the yen, while the yield on the 10-year US Treasury note rose to around 4.17%.

In commodity markets, the movement was much more violent. Oil prices rose about 1.3% after President Donald Trump ordered a blockade of tankers entering and leaving Venezuela, sparking supply concerns from the OPEC member. At the same time, silver hit a record high above $66/oz, gold rose again to near its all-time high, and platinum surged to its highest level since 2008.

The US jobs data showed the job market cooling, but not weakening rapidly. Non-farm payrolls rose by 64,000 in November after a 105,000 decline in October, while the unemployment rate rose to 4.6%, the highest since 2021. Due to the mixed results, the market refrained from raising bets on a near-term interest rate cut—the chance of a January rate cut is estimated at only about 20%. The focus now turns to Thursday's inflation data, which could change the narrative.

In stocks, sentiment improved as the session progressed, helped by a rebound in Chinese stocks and gains in US and European index futures. The technology sector also recovered after two days of pressure, while Chinese chipmaker MetaX's debut surged sharply. Against this backdrop, investors saw a stark contrast: equities were cautious, but commodities—especially precious metals—returned to the role of a magnet due to a combination of geopolitical and interest rate expectations. (az)

Source: Newsmaker.id