Breakfast Bites - Low Volume Week Ahead

Rise and shine everyone.

I hope everyone had a good holiday. It’s a quieter trading week with most people out of the office. Trading volume will be thin and that could make for some drastic moves. We’re done with most of the major economic data releases and the euphoria from the Fed pivot seems to continue.

Last week, we did experience some days of selling, and the way I see it, there was probably quite a lot of rebalancing and portfolio adjustments to be done given the Fed’s announcement and year-end, other than market mechanics We still finished the week in green with softer inflation data.

Today, for the US we have housing data and a 2-year auction of $57B with a 2-year FRN auction of $26B. No major earnings of note.

US Equity Market Futures are trading higher with Yields lower. The Yield Curve is at -0.45%. The US Dollar index is still below 102, likely giving Gold a bit. Gold is now at $2061. Oil is up again this morning, while Bitcoin pulls back.

In other news: Based on NASA's MERRA-2 climate model, the Arctic stratosphere has recently experienced the lowest December temperatures in 40 years. Typically, the stratosphere lacks any cloud cover, but when temperatures plummet to an exceptionally frigid -85°C, sparse water molecules come together to form ice crystals, initiating the formation of PSCs that display colors reminiscent of the aurora borealis. Keep an eye on Dutch TTF gas prices.

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