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Breakfast Bites - Tough start to the year
Red Sea issues lead to higher oil; Apple gets a downgrade; BofA's list of top 10 picks of 2024; ASML stops China exports;
Ayesha Tariq
January 02, 2024
Rise and shine everyone. Happy New Year.
US equity futures are lower this morning after closing out the year on a lower note. Yields have moved higher across the board to start the year. Global yields are also higher this morning.
The US dollar index is marginally higher alongside Gold, as a safe haven trade. Oil is surging up +2.5% this morning on news of further geopolitical tensions in the Red Sea area. Maersk (the largest shipping line) had to halt traffic again. US forces took down Houthi ships. The latest news is that Iran has dispatched a warship to the Red Sea. (Here’s our take on the Red Sea issue). Iran getting involved was a major tail risk and the real risk to oil remains any issues at the Strait of Hormuz (the area that divides the UAE and Iran).
In other news, Japan was hit by an earthquake yesterday, registering 7.6 on the Richter scale. Tsunami warnings have been issued and the search is still on for survivors. Japan’s markets are closed today for holiday.
Unfortunately, we’re not seeing the best start to the year and we just have to navigate this as best we can. Towards the end of this post, we share the top picks from BofA and whether growth or value is likely to do better this year.
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