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Futures

Futures Pull Back After Wall Street's Record-Closing

2024-12-05

On Thursday, U.S. stock index futures showed a muted trend. After all three major indexes achieved all-time closing highs in the previous session, they now find themselves pulling back. The focus this week remains on more employment-related data.

Navigating the Stock Market Amidst Employment Data

Stock Index Movements

The S&P 500, Nasdaq, and blue-chip Dow all reached record closing highs on Wednesday. This was mainly driven by the rally in technology shares following upbeat results from companies like Salesforce and Marvell Technology. Such positive performances have had an impact on the overall market sentiment.During Wednesday's discussions, Federal Reserve Chair Jerome Powell indicated that the economy is stronger than the central bank had anticipated in September. He also seemed to suggest his support for a slower pace of interest-rate cuts going forward. Meanwhile, San Francisco Federal Reserve Bank President Mary Daly stated that there is "no sense of urgency" in cutting rates. The comments from Richmond Fed President Thomas Barkin will be closely watched later in the day.Currently, traders anticipate a 74% chance of the Fed easing its monetary policy by 25-basis-points later this month, as per CME's FedWatch Tool. This expectation adds to the market's volatility and uncertainty.

Weekly Jobless Claims and Monthly Jobs Data

Before markets open, a reading of weekly jobless claims will be awaited. This is an important indicator as it provides insights into the labor market. In the lead-up to Friday's monthly jobs data, which is the centerpiece of this week, these jobless claims data will play a crucial role in shaping market expectations.BNP Paribas economists noted in a note that ahead of the "live" Fed policy meeting in December, special factors such as weather, the resolved Boeing strike, and election effects are likely to cloud the read on the job market. Their forecasts suggest that the November jobs report will be just ambiguous enough, with strong job growth but a slight rise in unemployment and moderate gains in pay. This ambiguity keeps a December rate cut as the base case.

Pre-Market Trading and Company Updates

Although the earnings seasons have reached a certain point, quarterly results from Dollar General and Kroger will be on the watchlist before markets open. These results will provide valuable insights into the performance of specific companies and their respective sectors.In premarket trading, cryptocurrency- and blockchain-related stocks saw a significant jump. Bitcoin, the world's largest cryptocurrency, stormed above the $100,000 mark for the first time. As a result, exchange operator Coinbase Global rose by 3.4%, miner MARA Holdings added 6.3%, and the largest corporate holder of bitcoin MicroStrategy advanced 6.1%.However, SentinelOne dropped 14.7% after missing Wall Street estimates for third-quarter profit. Synopsys also fell 7.4% after the chip design software firm forecast fiscal 2025 revenue below Wall Street expectations, partly due to a slump in China sales.At 5:08 a.m. ET, Dow E-minis were up 9 points (0.02%), S&P 500 E-minis were down 1.25 points (0.02%), and Nasdaq 100 E-minis were down 22 points (0.1%). These movements reflect the complex and dynamic nature of the market in the current economic environment.

Hyperliquid's native token, HYPE, has made significant waves in the crypto space. On Nov. 29, it debuted with an initial price of $3.90, and its airdrop event reached a total value of $1.2 billion, with 31% of the total supply going to the community. Just a day later, on Dec. 5, the Hyperliquid (HYPE) price rallied to a new all-time high of $13.14. This surge was followed by its listing on OKX's pre-market futures platform on Dec. 4, enabling customers to trade futures contracts a week after the token generation event.

Unlock the Potential of Hyperliquid's HYPE with OKX's Pre-Market Futures

OKX Pre-Market Futures Platform and HYPE/USDT Pair

The OKX pre-market futures platform has opened up new opportunities for HYPE trading. With the listing of the HYPE/USDT pair, users can now speculate on the altcoin's price before its spot trading listing on centralized exchanges. This has attracted significant attention from the crypto community and has led to increased trading volumes and market activity.

Shortly after its listing, HYPE surged to a high of $19.65 on the pre-market futures platform. However, it later traded at $13.70, down 14.38% from its all-time high. Despite this, the potential for further price rallies remains strong, especially with the speculation that the altcoin may soon secure spot trading support on OKX.

Pre-market trading delivery contracts on OKX are USDT-margined and typically delivered before the new token launches on the spot trading market. In this case, the HYPE token had already undergone its Token Generation Event on Nov. 29, adding an extra layer of excitement and anticipation to its trading journey.

Hyperliquid's Decentralized Perpetuals Exchange and Its Features

Hyperliquid is a decentralized perpetuals exchange that has been making waves in the industry. Its commitment to decentralization is highlighted by the absence of allocations for venture capitalists or private investors, which has won the hearts of the community.

The DEX's innovative features, such as the TWAP (Time-Weighted Average Price) mechanism, have also played a crucial role in attracting strong community support. This mechanism splits large orders into smaller transactions every 30 seconds with a maximum slippage of 3%, ensuring smooth and efficient trading.

Hyperliquid has previously managed to outpace competitors like Jupiter and SynFutures, setting a record $1.39 billion in daily trading volume in October, according to DeFiLlama's data. This demonstrates its ability to attract significant trading volume and compete with other exchanges in the market.

HYPE's Listing on CoinW and Market Speculation

The HYPE token has already been listed on CoinW, a centralized exchange, adding to its visibility and accessibility. Following its inclusion on OKX's pre-market futures platform, the crypto community is speculating that the altcoin may soon secure spot trading support on OKX, which could potentially lead to further price rallies.

The positive sentiment on X (formerly Twitter) surrounding Hyperliquid and HYPE has been fueled by the platform's innovative features and commitment to decentralization. This has led to increased interest and participation from traders and investors around the world.

As HYPE continues to make its mark in the crypto market, it will be interesting to see how its price and trading volume develop in the coming weeks and months. With its strong fundamentals and innovative features, HYPE has the potential to become a major player in the crypto space.

In the dynamic world of global finance, currencies have been maintaining a firm stance near their recent highs. This trend has been closely watched by market participants and economists alike. The Polish zloty and the Czech crown have remained resilient, hovering around more than two-month highs against the euro. The Hungarian forint has also shown strength, climbing for the third consecutive day as markets absorbed more hawkish central bank stances.

Unraveling the Strength of Currencies Near Recent Highs

Poland's Zloty: A Resilient Force

In Poland, the zloty has added 0.2% to trade at 4.27 per euro. Markets are eagerly awaiting a scheduled news conference with central bank Governor Adam Glapinski later in the day following Wednesday's rate decision. Bank Millennium suggests that investors have tempered expectations regarding the scale of possible rate cuts in 2025, but the governor's comments could provide valuable insights. On technical grounds, breaking the level of 4.2850 per euro opens up the potential for further movement to 4.2620.

The Czech Crown: Riding on Wage Data

The Czech crown rose in the previous session after third-quarter Czech wage data came in higher than expected. This positive development, coupled with the stance of central bank Governor Ales Michl, who indicated that policymakers were likely to soon pause their rate-cutting cycle, has given the crown a boost. It currently stands at 25.147 to the euro and is near a high of 25.11, its strongest since late September. "Stronger wages in Q3 and a vision of possible stability of rates in December are short-term positive news for the crown," CSOB noted. However, it also cautioned that further gains from current levels may be complicated due to global factors like U.S. payrolls data and euro/dollar moves.

The Hungarian Forint: Recouping Losses

The Hungarian forint, which hit a two-year low this week, could recoup some of its recent steep losses in the coming months. Analysts predict that it is expected to return to its current weak levels within the next year. Currently, the forint has risen 0.2% to 412.45 to the euro. The central banks of Hungary and Romania have already held their main rates steady at the European Union's joint highest levels for the past two meetings, as the region adopts stable policy stances despite lingering inflation risks and muted economic recoveries.

Regional Currency Dynamics

CEE SNAPSHOT AT MARKETS 1057 CET CURRENCIES shows the latest positions and daily changes of various currencies. The Czech crown, Hungarian forint, and Polish zloty are among the key players, with their movements reflecting the broader economic and monetary conditions in the Central and Eastern European (CEE) region. Romania's leu was steady as markets prepared for the third national vote in as many weeks. A benchmark domestic 10-year bond yield was steady at 7.48%, around its highest level since April 2023. People will vote in a presidential election runoff on Sunday, and the outcome could have significant implications for the country's political and economic landscape.

Global Influences and Outlook

After facing pressure from a firming dollar in the past month, currencies are now experiencing some temporary relief. Global factors such as U.S. payrolls data and euro/dollar moves continue to play a crucial role in dictating the movements of these currencies. Analysts see little scope for significant gains in the coming year for central Europe's main currencies. However, the current situation remains dynamic, and market conditions can change rapidly. Investors and market observers will be closely monitoring these developments to assess the future trajectory of these currencies.