Breakfast Bites - Rate cut bets dominate

Rise and shine everyone.

It’s a relatively quiet day for Macro Data. Major items of note are the US ADP numbers and the Bank of Canada’s rate decision, which is expected to remain steady at 5%.

Yesterday US JOLTS data saw the market spike after coming in much lower than expected at 8.73m vs. 9.35m expected. This was the lowest number since Q1, 2021 and vacancies are gradually returning to pre-pandemic levels. The labor market still remains imbalanced more than it should be but, traders saw this as a positive sign for Fed rate cuts next year and rallied.

Premarket US Equity Futures are trading higher led by mega-cap tech, while bond yields are also higher with a flatter curve. The Yield Curve is currently at -0.41%. Gold remains largely flat at $2021/oz and oil pulls back further to $71.62/bbl. Bitcoin is off its highs at 43,928.

Asia and Australia

• Asian equities are mixed this morning. Mainland China closed marginally lower, while HK saw a rally after yesterday’s strong pullback. Australia and South Korea are also higher.

• India continues to rally and the big news this morning is India’s stock market crossing the $4 trillion mark, narrowing the gap with Hong Kong in the 4th position.

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