Highlights
Most of the U.S. stock markets rebounded and bonds ended little changed on Monday while the dollar firmed slightly to Y154.60 on the uncertain outlook for another rate hike by the Bank of Japan next month. Oil prices surged over 3% on news that crude production at Norway's Johan Sverdrup oilfield had been halted.
The S&P 500 rose 0.4%, Nasdaq gained 0.6% and the Dow Jones Industrial Average slipped 0.1%. The yield on 10-year Treasurys stood at around 4.41%, after rising to 4.49% earlier in the day. Bond market prices have weakened, leading to higher yields on expectations that the Federal Reserve is not in a hurry to lower its policy interest rate further amid resilient U.S. economic growth and easing but sticky inflation.
In a speech to business leaders in Nagoya in central Japan, Bank of Japan Governor Kazuo Ueda stressed the need to continue unwinding large-scale monetary easing in the past but failed to provide a timeframe for further rate hikes.
Going forward, I think that gradually adjusting the degree of accommodation in line with improvement in economic activity and prices will support long-term economic growth and contribute to achieving the price stability target in a sustainable and stable manner, he said but added that the actual timing of the adjustments will continue to depend on the development in growth, inflation and financial conditions.
In the U.S. stock market, shares of Tesla finished 5.6% higher on a Bloomberg report that President-elect Donald Trump's transition team is planning a federal framework for self-driving vehicles. Those of Nvidia fell 1.3% after a weekend news report that the firm's new Blackwell chips have faced overheating issues.
Brent crude futures stood at $73.30 a barrel, up $2.26, or 3.2%. U.S. West Texas Intermediate crude futures finished at $69.16 a barrel, up $2.14, or 3.2%. The upward move was also driven by escalating tensions in the Russia-Ukraine war, following the Biden administration's decision to allow Ukraine to use U.S. weapons for striking deep into Russia.
The S&P 500 rose 0.4%, Nasdaq gained 0.6% and the Dow Jones Industrial Average slipped 0.1%. The yield on 10-year Treasurys stood at around 4.41%, after rising to 4.49% earlier in the day. Bond market prices have weakened, leading to higher yields on expectations that the Federal Reserve is not in a hurry to lower its policy interest rate further amid resilient U.S. economic growth and easing but sticky inflation.
In a speech to business leaders in Nagoya in central Japan, Bank of Japan Governor Kazuo Ueda stressed the need to continue unwinding large-scale monetary easing in the past but failed to provide a timeframe for further rate hikes.
Going forward, I think that gradually adjusting the degree of accommodation in line with improvement in economic activity and prices will support long-term economic growth and contribute to achieving the price stability target in a sustainable and stable manner, he said but added that the actual timing of the adjustments will continue to depend on the development in growth, inflation and financial conditions.
In the U.S. stock market, shares of Tesla finished 5.6% higher on a Bloomberg report that President-elect Donald Trump's transition team is planning a federal framework for self-driving vehicles. Those of Nvidia fell 1.3% after a weekend news report that the firm's new Blackwell chips have faced overheating issues.
Brent crude futures stood at $73.30 a barrel, up $2.26, or 3.2%. U.S. West Texas Intermediate crude futures finished at $69.16 a barrel, up $2.14, or 3.2%. The upward move was also driven by escalating tensions in the Russia-Ukraine war, following the Biden administration's decision to allow Ukraine to use U.S. weapons for striking deep into Russia.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
