Asian and European Markets Slightly Rise, U.S. Index Futures Uptrend

Key U.S. Labor Market Data to be Released This Week

U.S. Treasury Yields Rise Back to 4.6%

Chinese Yuan Hits Lowest in 16 Months

On the 6th, stock markets around the world, including Asia and Europe, started with slight gains, but political uncertainty limited the rise.

On the 6th, China's yuan hit its lowest in 16 months at 7.3296 yuan per dollar, and China's major stocks traded at their lowest levels since the end of September.

The MSCI Asia-Pacific index, excluding Japan, rose 0.6% on the day as South Korean and Taiwanese markets rose after falling 1% last week. The Hang Seng Index fell 0.3%, and Japan's Nikkei Index dropped 1.8%.

European stocks rose, led by ASML, as news of Microsoft's $80 billion investment in data centers sparked interest in semiconductor stocks.

The MSCI World Index rose 0.1%. Europe's Stoxx 600 Index increased by 0.1%.

In Canada, there were reports that Justin Trudeau, the embattled Canadian Prime Minister, might resign as the leader of the ruling Liberal Party on the 6th local time. The Canadian dollar, which has been weak due to Trump's tariff threats, continued to decline to 1.4404 against the U.S. dollar amid domestic political instability.

U.S. stock index futures rose 0.1-0.3%, raising expectations that last Friday's uptrend would continue.

This week, key U.S. labor market data will be released. The most notable December National Employment Report will be announced on Friday, the 10th.

Analysts estimate that total non-farm employment in December will increase by 150,000, down from 227,000 in the previous month. The unemployment rate is expected to remain at 4.2%. U.S. December employment is usually lower than November due to the year-end holidays.

The ADP job openings to be announced on Wednesday are also expected to show a slowdown in growth, increasing by 130,000 from 146,000 in November.

The Federal Reserve's December meeting minutes, to be released on the 8th, will provide a dot plot showing this year's interest rate trends. This week, speeches and comments from at least seven key monetary policy makers, including Federal Reserve Governor Christopher Waller, are scheduled.

U.S. 10-year Treasury yields rose for the second day, reaching 4.624%. U.S. Treasury yields have risen nearly 80 basis points in the fourth quarter alone.

Analysts at Saxo Bank said, "The key level to watch in the U.S. 10-year Treasury is whether it maintains the May 2024 high of 4.64%." They added, "If it breaks through, it could rise to 4.75%."

As Treasury yields rise, the dollar is naturally supported. The dollar index, which rose 0.9% last week, recorded 108.87, falling 0.3% on the day due to the rise of the euro and the British pound. The euro rose 0.25% to trade at $1.03365.

International oil prices showed a temporary rise due to cold weather in Europe and the U.S. but turned to a decline, with Brent Crude falling 0.4% to trade at $76.22 per barrel. West Texas Intermediate (WTI) fell 0.4% to trade at $73.81.

Guest Reporter Kim Jung-ah kja@hankyung.com