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Global market sentiment improved to start off the first week of 2023. On Wall Street, the Dow Jones, S&P 500 and Nasdaq 100 rallied 1.23%, 1.19% and 0.87%, respectively. Across the Atlantic, the FTSE 100 and DAX 40 gained 2.49% and 4.93%, respectively. Meanwhile, in the Asia-Pacific region, the Hang Seng Index and ASX 200 rose 6.33% and 1.28%, respectively.
Switching to currencies, it was a mixed bag for the US Dollar. The Euro and Japanese Yen underperformed while the Australian Dollar and British Pound outperformed. You would have to look at Treasury yields to see where the real story was. The 10-year rate dropped the most since February 2022. Falling bond yields helped gold soar 2.38%, the most since late November.
Traders focused on slowing average hourly earnings and a miss in US ISM services data, cooling longer-term hawkish Federal Reserve…
