Positive sentiment prevails on Tuesday

Equities continued higher, and US indices were glued to their all-time highs, while the USD declined modestly against all the major currencies, except against the yen.

In the Eurozone, German retail sales climbed unexpectedly to 0.6% month-on-month, against expectations of a drop to -0.5% from 0.5% scored in October. However, the yearly change stayed at -2.9%.

Additionally, in December, the German unemployment rate improved to 5.2%, while the unemployment change ticked higher to -23,000, from -34,000 in November.

At the same time, inflation in France ticked lower in December, according to the preliminary data. The monthly CPI came out at 0.2%, down from 0.4%, while the yearly gauge stayed at 3.4%.

Elsewhere, the new year started in a bearish regime for US bonds, pushing the two-year yield above 0.8% for the first time since March 2020. Additionally, the 10-year US yield rose sharply and jumped above 1.6%, while the 30-year yield rocketed above the 2% threshold. 

Later in the day, the ISM manufacturing PMI for December is due, expected to ease slightly to 60.1, down from 61.1 in the last release. The priced paid subindex (inflation gauge) will likely decline too.

Oil traders will pay attention to today’s OPEC meeting, attended by representatives from the 13 OPEC members and 11 other oil-rich nations. They discuss a range of issues regarding energy markets and, most importantly, agree on how much oil they will produce. Oil has been trending upwards recently, with the WTI benchmark trading at around 76.50 USD today.

Source: https://www.axiory.com/analytics/market-news/positive-sentiment-prevails-on-tuesday