Investors are generally optimistic going into 2024 and expect the Fed to cut rates as early as March but stocks came under pressure in a cautious first week of the year and the US 10yr Treasury yield climbed back above 4%.
Minutes from the December Federal Open Market Committee (FOMC) showed members agreeing to maintain a restrictive approach for now while expecting to cut rates before the end of the year.
On Friday, US Non Farm Payrolls data showed the economy added 216K jobs in December which was well above expectations. This may not be good news if it prompts the Fed to delay those rate cuts.
ISM Manufacturing PMI in the US was up slightly in December but remained below 50 (contraction) for the 14th Month.
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