Oil prices fall 1% after surprise US storage build

NEW YORK, Jan 10 – Oil prices fell nearly a dollar a barrel on Wednesday after a surprise jump in US crude stockpiles raised worries about demand in the largest oil market.

US West Texas Intermediate crude futures fell 87 cents, or 1.2%, to USD 71.37 a barrel. Global benchmark Brent crude oil futures settled 79 cents, or 1%, to USD 76.80 a barrel.

Prices had gained more than 1% early in the session but reversed course after the US Energy Information Administration reported a surprise build in crude oil stockpiles and larger-than-expected jumps in storage of gasoline and distillates.

“Today’s EIA report highlights investor concerns of slowing demand growth,” said Rob Haworth, senior investment strategist at US Bank Asset Management.

US crude inventories rose by 1.3 million barrels in the week ended Jan. 5 to 432.4 million barrels, compared with analysts’ expectations in a Reuters poll for a 700,000 barrel drop. Gasoline stocks rose by 8 million barrels while distillate stocks jumped by 6.5 million barrels, the EIA reported.

“Part of the explanation is weaker crude and refined product exports resulting in higher US builds, so that is something to watch in my view, how foreign demand evolves,” said UBS analyst Giovanni Staunovo.

Europe’s weak economic outlook added to oil demand concerns. The euro zone may have been in recession last quarter and prospects remain weak, European Central Bank Vice President Luis de Guindos said on Wednesday.

Limiting some losses, investors remained worried about potential oil supply disruptions in the Middle East during the Israel-Hamas war.

The White House said attacks by Yemen-based Houthi militants in the Red Sea were “escalatory” and the US will consult with its partners about next steps if they continue.

“Today’s market reaction indicate traders are actively balancing the potential impact of growing geopolitical risk and slowing economic growth on commodity prices,” said Thomas Wash, market strategist at Missouri-based Confluence Investment Management.

(Reporting by Shariq Khan; Additional reporting by Alex Lawler, Yuka Obayashi, and Muyu Xu; editing by Jason Neely, David Evans, and David Gregorio)

Oil tries to regain footing as Middle East crisis, OPEC supply in focus

Jan 9 – Oil prices steadied on Tuesday after sliding in the previous session, as markets weighed Middle East tensions against demand worries and rising OPEC supply.

Brent crude futures rose 17 cents, or 0.2%, to USD 76.29 a barrel at 0707 GMT, while US West Texas Intermediate crude futures inched up 0.1%, or 5 cents, to USD 70.82 a barrel.

The benchmarks had fallen over 3% and 4% respectively on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output.

“Saudi Arabia’s sharp price cuts and OPEC’s increased production have offset supply concerns caused by escalating geopolitical tensions in the Middle East,” said CMC Markets analyst Leon Li.

On the Gaza war, the Israeli military has said its fight against Hamas will rage through 2024, worrying markets that the conflict could grow into a regional crisis that could disrupt Middle Eastern oil supplies.

US Secretary of State Antony Blinken arrived in Tel Aviv late on Monday to brief Israeli officials on his two days of talks with Arab leaders on ending the war.

Holding back price gains however, a Reuters survey on Friday found that OPEC oil output rose in December as increases in Angola, Iraq and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC+ alliance.

Higher supply had prompted Saudi Arabia to cut the February official selling price of its flagship Arab Light crude to Asia to the lowest level in 27 months.

Oil prices are likely to trade in a range between USD 75 and USD 80 per barrel in the near term, said Suvro Sarkar, energy sector team lead at DBS Bank, “barring an unforeseen flare up in the Middle East situation.”

“On the supply side, there are some bullish factors from the closure of Libya’s largest oilfield, which has affected around 0.3 million barrels per day of oil production,” he added.

Supporting prices, the dollar paused its rally on Tuesday, as traders reaffirmed their bets for a slew of Federal Reserve rate cuts this year. A weaker dollar boosts oil prices as crude becomes cheaper for holders of other currencies.

Federal Reserve Governor Michelle Bowman on Monday said she now sees US monetary policy as “sufficiently restrictive” and signalled her willingness to support eventual interest-rate cuts as inflation eases.

The market is awaiting US inventory data from the American Petroleum Institute industry group later in the day.

(Reporting by Arathy Somasekhar in Houston and Emily Chow in Singapore; Editing by Sonali Paul)

Tokyo traders to get inflation read and wait for US CPI

Jan 8 – Tokyo markets will reopen on Tuesday after a long weekend with consumer price and spending data to take in early Tuesday and must decide what to make of the strong tech-led rally on Wall Street after Friday’s directionless trading.

Later in the week, the US December CPI report could provide important signals for global investors. For a day at least Nikkei and JGB players will have to get cues from Japan’s December household spending and Tokyo Consumer Price Index.

The Nikkei 225 index closed up 0.27% on Friday and is less than 1% below the 33-year high close from December.

On Monday, South Korea’s benchmark KOSPI fell 0.40% and China’s blue-chip index fell to its lowest level in nearly five years, while Hong Kong stocks shed roughly 2%, amid rising geopolitical tensions before Taiwan’s elections on Saturday and weak confidence in Beijing’s economy.

Things were looking up on Wall Street, where the Nasdaq and S&P 500 surged on the back of megacaps and chip stocks. The main negative was a slide in Boeing which put pressure on the Dow. The US ordered the temporary grounding of some 737 MAX 9 jets fitted with a panel that blew off an Alaska Air Group jet in midair on Friday.

In potential share-moving news, Japan’s Sony 6758.T is planning to scrap the merger of its Indian unit with Zee Entertainment, more than two years after the deal was announced, over a disagreement on who will lead the USD 10 billion entity, Bloomberg News reported on Monday.

Dollar/yen fell in US trade and was off 0.35%, with the dollar little changed against most currencies. Investors continued to digest mixed signals from Friday’s US jobs and Service sector data, but focused more on Thursday’s important inflation reading as Federal Reserve policymakers ponder how soon they can pivot to cutting rates.

The Bank of Japan is expected to be an outlier this year by lifting rates out of negative territory, though interest rates in the country are likely to remain below other major economies. Last week’s 7.6 magnitude earthquake could also hinder Japan’s economic recovery and goal to let inflation rise.

“The earthquake aftermath can push back speculation of a BoJ policy tweak later this month,” John Briggs, Global Head of Economics & Markets Strategy at NatWest Markets noted in a report on Monday.

Here are key developments that could provide more direction to markets this week:

– Tokyo CPI Tuesday (December)

– Japan household spending Tuesday (December)

Monday’s Morning Bid Asia incorrectly stated that Japan’s December household spending and Tokyo Consumer Price Index were due on Monday. The reports are scheduled for Tuesday.

(Reporting by Alden Bentley, additional reporting by Karen Brettell)

Dollar falls as traders focus on data for Fed policy clues

NEW YORK, Jan 8 – The dollar dropped against the euro and yen on Monday as investors continued to digest last week’s mixed US economic data and looked ahead to a key inflation reading for fresh clues on when the Federal Reserve is likely to begin cutting interest rates.

The greenback initially bounced on Friday after data showed that US employers hired 216,000 workers in December, above economists’ expectations in a Reuters poll, while average hourly earnings rose 0.4%, which was also above expectations.

The US currency then dropped, however, as investors focused on some underlying factors in the jobs report that showed less strength. It declined further after a separate report showed the US services sector slowed considerably in December, with a measure of employment dropping to the lowest level in nearly 3-1/2 years.

“Friday’s nonfarm payroll data was kind of a mixed bag. The headline number was definitely quite high and good, but there were a lot of subsets to that data point that showed some larger weakness in the labor market as well,” said Helen Given, FX trader at Monex USA in Washington.

“There are definitely cracks slowing down the pace of labor hiring in the US and the labor market is definitely loosening,” she added.

The release on Thursday of the consumer price inflation report for December will be the main piece of economic data this week. It is expected to show headline inflation rose 0.2% in the month and by 3.2% on an annual basis.

A New York Fed report on Monday showed that US consumers’ projection of inflation over the short run fell to the lowest level in nearly three years in December.

A drop in inflation closer to the Fed’s 2% annual target would make it more likely that the US central bank will cut rates in the coming months.

Fed funds futures traders are pricing in rate cuts beginning in March, though the odds of a move that soon have fallen. Traders now see a 64% chance of a rate reduction in March, down from 89% a week ago, according to CME Group’s FedWatch Tool.

Some analysts see the Fed as most likely to make its first cut in order to avoid the gap between the federal funds rate and inflation widening too far, as such a scenario would tighten economic conditions more than policymakers intend.

Atlanta Fed President Raphael Bostic said on Monday that with inflation still above the central bank’s target, his bias is for monetary policy to remain tight even though overall risks in the economy have become balanced between those posed by rising prices and those posed by slower employment growth.

RATE-CUT EXPECTATIONS

The dollar index was last down 0.23% at 102.21, after gaining 1% last week, the most in six months.

The index hit a five-month low of 100.61 on Dec. 28. But with other major central banks including the European Central Bank and Bank of England also expected to cut rates this year, some analysts see significant further weakness in the US currency as unlikely this year.

The euro rose 0.19% to USD 1.09595. The greenback fell 0.35% to 144.10 Japanese yen.

The Bank of Japan (BOJ) is expected to be an outlier this year by lifting rates out of negative territory, though interest rates in the country are likely to remain below those of its global peers.

The timing of any hike may also be pushed back after Japan last week suffered a 7.6 magnitude earthquake in the western Noto peninsula.

“The earthquake aftermath can push back speculation of a BOJ policy tweak later this month,” John Briggs, global head of economics and markets strategy at NatWest Markets, noted in a report on Monday.

In cryptocurrencies, bitcoin jumped 7.1% to USD 47,065, the highest level since April 2022. The US Securities and Exchange Commission is due to decide whether to approve bitcoin exchange-traded funds.

(Reporting by Karen Brettell; Additional reporting by Alun John in London; Editing by Kirsten Donovan and Paul Simao)

Gold retreats to three-week low ahead of US inflation data

Jan 8 – Gold prices fell to a three-week low on Monday, pressured by elevated Treasury yields as expectations for an imminent Federal Reserve interest rate cut faded, with investors looking ahead to this week’s US inflation data for more clarity.

Spot gold was down 0.9% at USD 2,028.03 per ounce by 2:25 p.m. ET (1925 GMT) after touching its lowest price since Dec. 18 earlier in the session.

US gold futures settled 0.8% lower at USD 2033.5.

The release on Friday of data showing the US added more jobs in December than expected by economists in a Reuters poll prompted some doubts in financial markets that the US central bank would start cutting interest rates in March.

“Maybe that takes some of the rate-cut odds off the table or lowers them to some degree,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Higher interest rates increase the opportunity cost of holding non-yielding bullion.

The benchmark US 10-year Treasury yield remained above 4% on Monday.

The market currently sees a 69% chance of a rate cut at the Fed’s March 19-20 policy meeting, according to the CME FedWatch Tool. The US government is scheduled to release its monthly consumer price index report on Thursday.

“If and when a recession becomes apparent, the Fed can be expected to cut rates, likely weakening the dollar and benefiting the dollar gold price,” Heraeus Metals said in a note.

Spot silver was down 0.4% at USD 23.08 per ounce and platinum fell 1.5% to USD 945.78.

Palladium lost 2.8% to USD 997.93, falling for a tenth straight session.

“In aggregate, price risk remains to the downside for palladium for 2024, and it is likely that the price will slip back below USD 1,000/oz at some point this year,” Heraeus Metals said.

(Reporting by Anushree Mukherjee in Bengaluru; Editing by Kirsten Donovan, Paul Simao and Maju Samuel)

Oil falls over 3% as Saudi price cuts add to demand doubts

NEW YORK, Jan 8 – Oil prices fell over 3% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output that offset supply concerns generated by escalating geopolitical tension in the Middle East.

Brent crude settled down USD 2.64, or 3.4%, at USD 76.12 a barrel, while US West Texas Intermediate crude futures lost USD 3.04, or 4.1%, at USD 70.77 a barrel.

Both contracts climbed more than 2% in the first week of 2024 as geopolitical risk in the Middle East intensified after attacks by Yemen’s Houthis on ships in the Red Sea.

On Sunday, rising supply and competition from rival producers prompted Saudi Arabia to cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months.

“That’s raising concerns about demand in China and global demand as well,” Price Futures Group analyst Phil Flynn said. “The stock market is off to a weak start this year and this news from Saudi Arabia has caused the bottom to fall out.”

A Reuters survey on Friday found that OPEC oil output rose in December as increases in Angola, Iraq and Nigeria offset continuing cuts by Saudi Arabia and other members of the wider OPEC+ alliance.

The boost came ahead of further OPEC+ cuts in 2024 and as Angola exited from OPEC starting this year, factors which are set to lower January output and market share.

“If we were just to focus on the fundamentals, including higher inventories, higher OPEC/non-OPEC production, and a lower-than-expected Saudi OSP, it would be impossible to be anything other than bearish on crude oil,” said IG analyst Tony Sycamore.

“However, that doesn’t take into account the fact that geopolitical tensions in the Middle East are undeniably rising again, which will mean limited downside.”

US Secretary of State Antony Blinken held more talks with Arab leaders on Monday as part of a diplomatic push to stop the war in Gaza from spreading further.

The conflict has already sparked violence in the Israeli-occupied West Bank, Lebanon, Syria, and Iraq, and also led to Houthi attacks on Red Sea shipping lanes.

Meanwhile, the oil price slide was tempered by a force majeure by Libya’s National Oil Corporation on Sunday at its Sharara oilfield, which can produce up to 300,000 barrels per day.

(Reporting by Stephanie Kelly in New York; additional reporting by Natalie Grover and Noah Browning in London, Mohi Narayan in New Delhi, and Florence Tan in Singapore; editing by David Goodman, Kirsten Donovan, Sharon Singleton, Barbara Lewis, and Richard Chang)

China regulators lift stock net-selling ban for mutual funds-sources

SHANGHAI/SINGAPORE, Jan 8 – China’s securities regulator is allowing mutual fund managers to sell more shares than they buy each day, three sources said, removing a ban introduced late last year aimed at propping up a flagging stock market.

The China Securities Regulatory Commission (CSRC) late last year barred major mutual fund companies from selling shares on a net basis on any day, answering top leadership calls to stabilize a market that was among the world’s worst performers.

CSRC didn’t immediately respond to a request for comment.

One source directly aware of the change suspected the policy shift was partly due to growing redemption pressures on funds.

“If you net sold stocks at the end of last year, you would get calls from regulators,” the source said, adding he received no such calls this year.

It’s understandable, as “if you cannot net sell stocks, you don’t have the money to repay redeeming investors.”

Such so-called window guidance – or unofficial, verbal advice from regulators – has disappeared in recent days, two sources with direct knowledge of the issue said.

“The net selling restriction here has been removed. We can now net sell stocks,” said one of the people.

China’s blue-chip CSI300 Index slumped 11% last year amid a faltering post-COVID economic recovery, a deepening property crisis, and geopolitical tensions.

The CSI300 index was one of the world’s worst-performing markets in 2023, despite a slew of government support measures that included a cut in stamp duty on trading, restrictions on share sales by listed companies, and a slowdown in the pace of listings.

In its latest market-supportive measure, the CSRC informally asked some of China’s biggest mutual fund managers to prioritize the launch of equity-based funds over funds based on other types of securities.

Reflecting heavier selling pressure, China’s blue-chip index fell to its lowest level in nearly five years on Monday, which traders say reflects a lack of confidence in the strength of the domestic economy and increasing tensions with the United States and its allies.

(Reporting by Shanghai newsroom: Editing by Neil Fullick)

Unloved healthcare stocks draw investors despite US election risks

NEW YORK, Jan 8 – The US healthcare sector is showing signs of life after lagging in 2023 as investors bet cheap valuations will offset a tendency to underperform during presidential election years.

The S&P 500 healthcare sector has climbed about 6% since the start of December, doubling the gain of the broader index during that period. Its performance during 2023 overall was far less impressive, as it rose just 0.3% compared to the S&P 500’s 24% jump.

Healthcare, which has a roughly 13% weight in the S&P 500, was one of the areas left behind last year as investors flocked to the narrow group of massive tech and growth stocks that propelled indexes higher.

The rise of new obesity treatments sparked worries that there would be less need for medical treatments aimed at weight-related health conditions at the same time demand for COVID-19 products waned.

The sector’s lackluster showing has made it an attractive target for investors looking for undervalued areas of the market. The healthcare sector trades at 17.9 times forward earnings estimates versus a P/E ratio of 19.7 for the S&P 500, a discount of 9%. Historically, healthcare has traded at a 4% premium to the broader index, data from LSEG Datastream showed.

“Investors are starting to look out for those sectors that didn’t work in 2023, and healthcare fits that bill,” said Art Hogan, chief market strategist at B. Riley Wealth, who is recommending investors “overweight” the healthcare sector.

Some investors are also betting that the rally that boosted tech and growth stocks will spread to other areas – a phenomenon that appears to have started late last year as banks, small caps and other unloved areas of the market drew heavy buying.

Earnings are another potential bright spot, with companies in healthcare expected to increase profits by 17.5% in 2024, versus an 11.1% rise for the S&P 500 overall, according to LSEG data.

Last year “was a very narrow market and I think that broadens out in 2024 and creates opportunities for lots of different stocks to perform better, including healthcare stocks,” said Michael Smith, senior portfolio manager for Allspring Global’s Discovery Large Cap Growth Fund, which owns shares of UnitedHealth Group, Intuitive Surgical, and Veeva Systems.

The discount is more acute in certain areas of healthcare.

Excluding Eli Lilly, whose shares soared last year on enthusiasm over the potential of its weight-loss treatment, a group of large-cap drugmakers and biotech companies tracked by JPMorgan were trading at a 30% discount to the S&P 500, a “historically low” level, the bank’s analysts said in a note late last month.

Patrick Kaser, a portfolio manager at Brandywine Global, said the firm’s value-stock funds are significantly overweight the sector, including holdings in CVS Health, Bristol Myers Squibb and Viatris.

“Classically, value investors are looking for a group that is out of favor with low valuations,” Kaser said. “Healthcare checks both those boxes really well right now.”

REASONS FOR CAUTION

An early test for the sector comes at this week’s JP Morgan healthcare conference in San Francisco, where investors are gathering to hear dozens of companies forecast the year ahead and talk about their prospects.

There are reasons for caution regarding healthcare’s performance in 2024.

The widely expected scenario of a stable but slowing economy, ebbing inflation, and falling interest rates could give investors little reason to abandon the big tech and growth stocks that worked for them last year. Those same factors could also be more favorable to sectors that are more tightly linked to the economy, such as financials and industrials.

Healthcare stocks also tend to struggle in presidential election years, as the cost of medical care frequently emerges as a political issue that puts the industry in the crosshairs. The sector has only beaten the S&P 500 in three of the past 12 presidential election years, according to Strategas.

However, some investors believe this year’s presidential contest poses less risk to healthcare stocks than recent past elections.

Neither political party is expected to gain significant majorities in Congress, diminishing the chances of major legislation that overhauls the industry, while President Joe Biden already enacted legislation during his first term that addresses drug prices.

Generally, healthcare is “an easy target for politicians,” said Kaser.

This year, “I don’t think there is a likely outcome of anything big and new hitting the sector… (There is) less uncertainty than many election years.”

(Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and Bill Berkrot)

Yields whipsaw in volatile session, end near three-week highs

NEW YORK, Jan 5 – US Treasury yields whipsawed on Friday after a strong jobs report and an unexpectedly weak reading of the services sector gave clashing views of the strength of the US economy.

Yields, which move in the opposite direction of prices, hit three-week highs early in the trading session after a better-than-expected nonfarm payrolls report.

But they later nosedived, taking the 10-year Treasury back below 4%, after the Institute for Supply Management (ISM) said service sector employment plunged to 43.3 last month, the lowest level since July 2020. The index was at 50.7 in November.

In afternoon trading, the yield on 10-year Treasury notes climbed again, notching 6 basis points to 4.051%. On the week, the 10-year yield rose 13.1 basis points, the largest one-week gain since mid-October.

Jobs have become a focus for markets as investors look to anticipate the timing of the first interest rate cut by the US Federal Reserve. Persistent labor market strength threatens to accelerate inflation, forcing the Fed to maintain or raise rates after its most aggressive hiking cycle since the early 1980s.

“I don’t know how to classify this (ISM) report other than to say it was absolutely dismal,” said Jeff Klingelhofer, co-head of investments for Thornburg Investment Management.

“One data print is one data print but currently you have two very different reads into the employment side of the consumer equation,” he added.

Futures markets reversed following the ISM report.

Markets are now pricing in a 33% chance that the Fed keeps benchmark rates at their current range of 5.25% to 5.5% at its March meeting, down from a 44% chance seen shortly after the nonfarm payrolls report, according to CME’s FedWatch Tool.

And markets are pricing in a 62% chance of a 25 basis point rate cut, up from a 53% chance seen earlier in the day.

Overall, markets see the Fed cutting rates by a total of 143 basis points by the end of the year, down from expectations of more than 160 basis points two weeks ago.

Volatility will likely continue in the weeks ahead as more Treasury supply and corporate bond issuance comes to the market, said Chris Gunster, head of fixed income at Fidelis Capital.

“Markets are starting a new year and comparing their expectations with the Fed and with the data and saying there’s a disconnect here,” he said. “Now you’re starting to see yields back up and we think we’re going to see more of that as the year moves on.”

The yield on the 30-year Treasury bond was up 7.3 basis points at 4.208%.

The two-year US Treasury yield, which typically moves in step with interest rate expectations, was up 1.3 basis points at 4.395%. The two-year year rose 13.2 bps this week, the biggest gain since early December.

January 5 Friday 3:29 PM New York / 2029 GMT

	Price	Current Yield %	Net Change (bps)
Three-month bills	5.2325	5.3878	-0.007
Six-month bills	5.045	5.2611	-0.013
Two-year note	99-186/256	4.3953	0.013
Three-year note	100-138/256	4.1769	0.028
Five-year note	98-206/256	4.0171	0.044
Seven-year note	98-58/256	4.0441	0.048
10-year note	103-156/256	4.0514	0.060
20-year bond	105-24/256	4.3634	0.068
30-year bond	109-40/256	4.2082	0.073

(Reporting by David Randall; Editing by Susan Fenton, Barbara Lewis, Jonathan Oatis, and Alexander Smith)

Investors trim upside options bets as ‘euphoric’ US stock rally stalls

NEW YORK, Jan 5 – Investors are losing their taste for chasing US stock gains in the options market and are eying downside protection as the S&P 500’s rally wobbles at the start of 2024.

The S&P 500 fell 1.7% in the first three trading days of the year, its worst stumble out of the gate since 2016. That comes after a surge in which the S&P 500 rose 11% during a dizzying fourth-quarter rally. The index gained 24% in 2023.

Many believe a pullback is par for the course after such sharp gains. The most widely followed gauge of downside protection – the Cboe Volatility Index – is trading within 2 points of a four-year low hit late last year, a sign that investors remain sanguine. As of midday on Friday, the S&P was up around 0.3%, possibly on track to snap its four-day losing streak.

Nevertheless, other barometers show investors may be expecting more speed bumps in the near term. One measure of two-month S&P 500 skew – an options market gauge for the relative demand for upside call contracts versus downside put contracts – has crept up to its highest level since late October, though it is still near a multiyear low hit last month.

The tech-focused Nasdaq Composite and the Russell 2000 index of small-cap stocks show similar upticks in skew measures. Calls convey the right to buy shares at a fixed price in the future and are favored by investors looking to place relatively inexpensive bets on stock price gains.

Steve Sosnick, chief strategist at Interactive Brokers, said the recent stumble in stocks has prompted investors to take a more balanced approach to risk following a rally in which many market participants chased the gains in equities.

“We were euphoric into the end of the year,” he said. “It wasn’t just a modest end-of-the-year rally … this was ferocious, buy everything, pay any price, stuff,” Sosnick said, noting robust activity in upside call options in December.

Some US data has bolstered the case for a cautious outlook. US employers hired more workers than expected in December while raising wages at a solid clip, Friday’s report showed, casting some doubt on financial market expectations that the Federal Reserve would start cutting interest rates in March.

That data was counterbalanced by a report showing the US services sector slowed considerably in December, a survey showed on Friday.

A further test could come next week, when the US is set to release its highly awaited consumer price report and earnings season kicks off.

December’s rush into upside calls may be one reason skew measures slipped to historic lows last month, as many were fearful of “missing out” on the rally in the final weeks of the year, said Christopher Jacobson, a strategist at Susquehanna Financial Group.

With the rally running into turbulence at the start of the year, investors have been less inclined to bet on upside, helping skew measures rebound, Jacobson said.

(Reporting by Saqib Iqbal Ahmed in New York; Editing by Ira Iosebashvili and Matthew Lewis)

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