• NFP and other key data await as Wall Street slides in for another day
• Boost the dollar against the yen ahead of key events, risk-off and load-increasing conditions
• Oil eases on Ukraine peace hopes, gold eases higher

The stock remains on the back foot amid ongoing AI angst

Markets remained in a cautious mood on Tuesday after shares on Wall Street were earlier in the red to end Monday’s session. Tech stocks have underperformed recently as growing concerns about an AI bubble have fueled rotations in value stocks, reducing the chances of a broader Santa rally later in the year.

The latest scare came after both earnings and highlighted the risks associated with high earnings expectations. Oracle is financing its data center expansion with debt, while Broadcom faces a margin squeeze. But as usual, amid the sell-off, there have been some winners, with the total jumping 3.5 percent yesterday after the company said it had begun testing its Robotex without a safety driver.

Equity in Asia has also not had an even start to the week, with weak Chinese data weighing on sentiment. But European stocks have been slightly cheaper during the last full trading week of the year.

Yen shines in Boj’s eyes

Safe havens have benefited somewhat from the downward tone but fundamentally, the Japanese currency is finally gaining some traction ahead of Friday’s expected rate hike by the Bank of Japan. Still, the 25-bps increase is only worth 82% so further gains are possible if odds rise further in the coming days.

The yen’s rally is under pressure, trading near a two-month high. But his losses since last weekend have been more modest than ever.

Pound on PMIs ; Aussie, Kiwi and Looney Slide

Risk appetite and weak commodity prices have been a drag on the Aussie, but for Kiwis, it’s newly appointed RBN governor Anna Breman’s comments that financial conditions have tightened more than expected that hurt the currency, as investors put off the timing of the first rate hike in 2026.

On the other hand, Canada retreated from a three-month high against its US counterpart yesterday after the numbers came in slightly below expectations.

The euro held steady despite a flash Eurozone PMI that missed forecasts, while Britain’s PMI beat expectations, helping sterling above $1.34 after dipping earlier on a mixed jobs report that showed the collective rate rose to 5.1% in October for three months.

NFP kicking off the pre-Christmas US data flurry

Looking ahead to the US session, the focus will be entirely on the delay for November at 13:30 GMT. The US economy likely added 50K jobs, down from 119K previously. However, the risks are tempered by the downside that the government was still closed mid-month and following recent holiday announcements.

The numbers are still released today but may not attract much interest as they are for October and attention will quickly shift to Thursday’s report.

At this stage, Wall Street traders are probably hoping for a slightly softer figure, as it would boost the odds of more than the single 25-bps cut expected in 2026.

Bitcoin slips again, oil under pressure, gold off high

Doubts about how often the Fed will cut rates next year have been a major headwind for cryptos lately, with AI jitters adding to the self. It has already fallen more than 5% this month and is not looking to bounce back at the end of a year. After failing to break the key resistance area of ​​,000 94,000, Bitcoin is at risk of testing the support area of ​​,000 84,000 soon.

Meanwhile, the latest gains appear to have run out of steam, as the precious metal fell below 4,300, near an eight-week high on Friday.

Prices are also falling, with WTI futures hitting their lowest since early May. Growing signs that Ukraine and Russia are moving closer to a peace deal, which would likely lead to an easing of Russian oil sanctions, are adding to existing overreach concerns.

The latest negotiations in Germany yielded a positive outcome on the key issue of security guarantees for Ukraine. But with WTI futures looking oversold, an immediate breach of the $55 level may not be on the cards.