5 Things You Need to Know to Start Your Day

Good morning. Stock bulls see another good month ahead in December, markets are convinced rate cuts are coming and both gold and Bitcoin hav [View in browser]( [Bloomberg]( Good morning. Stock bulls see another good month ahead in December, markets are convinced rate cuts are coming and both gold and Bitcoin have rallied. Here’s what’s moving markets. — [Sam Unsted]( December predictions US stock futures are slipping this morning and a cool-down in the swings seen in the S&P 500 as last month closed out has given [fuel to bulls that more gains may be on the way](. The average daily move in the index last week was the tamest in half a year, with some momentum fading after its second-best November since 1980. Optimists think this indicates that the kind of euphoria that normally precedes a rout hasn’t been generated. Morgan Stanley’s Michael Wilson, who has kept a broadly bearish stance through the year, isn’t changing his tune, however. He thinks [December will be tough for US stocks](, with fluctuating bond yields providing a headwind. Cut bets Last week’s [rally in Treasuries is paring]( this morning as traders gear up for a slew of economic reports over the course of this week that will reveal the health of the US labor market. Federal Reserve Chair Jerome Powell [pushed back]( on the growing expectations for rate-cuts that have powered the bond rally, repeating that the Fed is prepared to tighten policy again if it needs to. The moves in bond markets indicate [traders have brushed that off](, convinced that the hiking cycle is done and are now turning their attention to the question of when cuts will emerge and how deep they will be. Gold and Bitcoin Those increasing bets on rate cuts early in 2024 helped gold to [touch the highest level on record](, in spite of the attempts by the Fed to temper that optimism. The precious metal has been rallying since October, first on safe-haven demand amid the Israel-Hamas conflict and then on the plunge in the dollar and Treasury yields following Powell’s speech on Friday. [Bitcoin is getting in on the act too](, topping $41,000 and extending its rebound for the year, partly on rate-cut bets along with hopes about upcoming ETF launches, though some technical indicators suggest the rally could be stretched. Evergrande reprieve China Evergrande has [won some breathing room]( to strike a restructuring deal with its creditors after a Hong Kong court pushed back a decision on whether the company, the world’s most indebted property developer, should be wound up. The CSI 300 stock index closed at the lowest level since February 2019, however, amid ongoing concern about the health of China’s economy in spite of efforts made by authorities to shore it up. China’s central bank governor, meanwhile, affirmed the nation’s focus on boosting the quality of credit, saying that the [growth of money supply will be kept in check](. Coming up… US factory orders will top the economic agenda today with little on the equities calendar now that earnings season is mostly done. Later in the week, there will be plenty of reports on the jobs markets — including JOLTS, ADP, initial jobless claims and payrolls data. In premarket trading, Spotify shares are rising after the music-streaming firm announced plans to [cut about 17% of its staff]( and Swiss drugmaker Roche has [snapped up obesity drug maker Carmot]( to get a foothold in the booming industry. What we’ve been reading This is what’s caught our eye over the past 24 hours. - Israel [widens its offensive]( in Gaza. - Bill Gates says the chance of [hitting global warming goals]( is slipping. - The analyst who called Chinese bank turmoil says [trusts are next](. - Cloud computing startup CoreWeave has racked up a [$7 billion valuation](. - [A $14,729 bill]( is holding up plans for a wealth tax. - A closed-door meeting at COP28’s finance day on [how to handle fossil fuels](. - How the US and Venezuela [reached a breakthrough](. And finally, here's what Joe’s interested in this morning Hello and Happy Jobs Week. In many respect, it feels like the next few days are all a big lead up to Friday's report. With so much talk now about rate cuts, soft landings, softening in the labor market, and so forth, the stakes for this Non-Farm Payrolls Report feel like the highest in a long time. After basically two years of it all being about inflation, we are at the point where the labor data is probably more interesting and important. Economists are expecting 180K new jobs, with the unemployment rate holding steady at 3.9%. Of course, the report could be messy. Last month was likely impacted negatively by the strike. This month the impact could be positive. So figuring out what the "real" underlying trend pace of job creation may be is open to much interpretation. In the meantime, while we wait for Friday, we have JOLTS and ISM Services tomorrow, ADP on Wednesday and then of course Initial Jobless Claims on Thursday. It should be an interesting one! Follow Bloomberg's Joe Weisenthal on X [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. [Bloomberg Markets Wrap: The latest on what's moving global markets. Tap to read.]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](