As we approach the year-end holidays, Wall Street is achieving unprecedented milestones, driven by global disinflation tailwinds that have propelled both bonds and stocks worldwide. This surge in performance, with the S&P500 nearing all-time highs and the Nasdaq 100, boasting a remarkable 50% gain this year, positions the market for potential shifts in 2024.
Despite fluctuations in the dollar, which showed mixed results, crude oil prices experienced a slight uptick. Meanwhile, concerns about supply chain disruptions in the Red Sea were mitigated by U.S. naval force protection.

Asia Pacific
In the Asia Pacific region, the economic challenges in China appeared to be impacting neighboring countries, as Japan reported a decline in exports, particularly in chip shipments bound for China. Nevertheless, Tokyo's stocks and bonds remained buoyant following the Bank of Japan's decision to maintain its super-easy monetary policy.

The Greenback is consolidating after it has dropped down from the resistance zone located above the 145 mark against the Yen.
Aussie is hovering in a local range.

Europe
Ten-year gilt yields reached their lowest point since April at 3.51%, prompting a 1% jump in the FTSE100. This movement was fueled by the news of the UK's annual consumer price inflation dropping to 3.9%, below expectations and the Bank of England's forecast.
Sterling faced downward pressure as UK money markets began pricing in the possibility of a BoE rate cut in March, with two quarter-point cuts anticipated by midyear.

Despite suggestions from Bundesbank chief Joachim Nagel that rates may have peaked, he cautioned against speculating on an imminent rate cut.
Euro fell from the resistance zone. Initial support can be found closer to the range $1.0900-1.0920.

America
In the United States anticipation of rate cuts in 2024 has created a sense of euphoria in the pre-Christmas air. U.S. Treasury yields for 10-year bonds fell to their lowest since July at 3.8830%, influenced in part by a sharp drop in UK inflation.
Chicago Federal Reserve boss Austan Goolsbee tempered expectations, stating that markets may have gotten "a little ahead of themselves," emphasizing that the pace of Fed easing would be dictated by inflation progress.

While the MSCI's all-country stock index reached levels not seen since March last year, U.S. stock futures took a breather, stepping back from recent peaks early on Wednesday.
Investors are closely monitoring U.S. consumer confidence readings for December, following positive housing market indicators earlier in the week.