Fri 16 Jan: After the Bell
Quiet Finish to the Week as Bond Yields Rise and Earnings Drive Caution. Your 5’ evening market wrap📄📈
ℹ️ Today’s performance tables & charts on the ‘Market Data’ post.
Good evening,
Equities and currencies were little changed on Friday as markets headed into Monday’s US stock and bond market holiday. Benchmark bond yields edged higher into the close, with the 10-year Treasury rising another 6bp to 4.23%, its highest level since early September, reflecting a continued repricing of rate expectations.
On a weekly basis, major stock indices finished marginally lower, with consumer staples, real estate and industrials emerging as the clear outperformers. In commodities, crude oil ended the week modestly firmer, while cocoa and corn both fell around 5%; silver stood out, surging more than 12% to a fresh record high.
Looking ahead, sentiment is likely to remain driven by ongoing earnings releases following a mixed week for financials, alongside persistent focus on the Fed’s independence and evolving geopolitical risks, as Washington continues to shape its stance on Iran, Venezuela and Greenland.
It was a light day on the data front, but there were some relevant comments from US central bankers. Fed Vice Chair Bowman said the Fed should remain prepared to cut rates if labour market conditions weaken, highlighting growing balance-of-risk considerations between inflation and employment. Separately, Vice Chair Jefferson noted that current monetary policy is well-positioned, supporting a near-term hold as inflation continues to ease and labour market conditions remain broadly stable. The Fed’s next meeting is on Jan 28th, and markets continue to price in an implied probability of 95% for a steady policy rate at 3.5-3.75%.
