The US stock market rebounded on the 23rd. Buying dominated as inflation continued to slow and economic data showed interest rate hikes were helping the Fed hit its target.
| buffer stock | closing price | Compared to the previous working day | Exchange rate |
|---|---|---|---|
| S&P 500 stock index | 3844.82 | 22.43 | 0.6% |
| Dow Jones Industrial Average | 33203.93 | 176.44 | 0.5% |
| NASDAQ Composite Index | 10497.86 | 21.74 | 0.2% |
The S&P 500 and Nasdaq 100 indexes fell for the third consecutive week since September. In addition to the US Fed’s hawkish stance, economic statistics suggest that the economy is strong enough to withstand further interest rate hikes, so this month’s development is bearish.
The US Personal Consumption Expenditure (PCE) price index slowed in November, while spending remained stagnant. US consumers’ short-term inflation expectations, according to a report from the University of Michigan, also declined further in late December.
Core PCE price index in the US continues to slow in November, with spending lower than expected
Fed officials have repeatedly said they would continue to hike rates this year, but markets have often ignored the warnings. Investors are especially sensitive to jobs information, however, as a weakening job market is an event the Fed is watching closely.
“The markets have been right most of the time in the past, but in 2022, the Fed was right,” Jim Bianco, founder and president of Bianco Research, told Bloomberg TV and radio. “Will the monetary policy shift happen in 2023 or 2024? If the market doesn’t see the turnaround it’s hoping for, I think there will be room for a disappointing sell-off,” he said.
US treasures
US Treasuries are down. Selling dominated after the release of economic data. The day was shortened in view of a holiday.
| state bonds | Last price | Year-on-year change (bps) | Exchange rate |
|---|---|---|---|
| US 30-year bond yield | 3.82% | 8.45 | 2.3% |
| 10-year US Treasury yield | 3.75% | 6.86 | 1.9% |
| 2-year US Treasury yield | 4.32% | 4.97 | 1.2% |
| US Eastern Time | 2pm |
foreign currency
The dollar fell in the foreign exchange market. Extended the weekly drop. The selling was prompted by November price data, which suggested easing inflation. Although the yen was weak, resource-producing country currencies led gains against the dollar.
| exchange | Last price | Compared to the previous working day | Exchange rate |
|---|---|---|---|
| Bloomberg dollar index | 1255.39 | -1.92 | -0.2% |
| dollar/yen | ¥132.83 | ¥0.48 | 0.4% |
| euro/dollar | $1.0617 | $0.21 | 0.2% |
| US Eastern Time | 4:53pm |
The yen fell against the dollar. During the New York period, the exchange rate was mostly in the high range of 132 yen, but there were occasions when it fell to 133.14 yen.
“There will be more policy convergence between the Fed and the Bank of Japan and the European Central Bank (ECB), leading to some dollar weakness,” said Roger Hallam, head of global rates at Vanguard Asset Management. it should be,” he said.
raw
New York crude futures rebounded to a three-week high. It also climbed on a weekly basis, hitting a two-week high. Russia has protested the price cap on domestic crude exports and has suggested it could cut production by up to 700,000 barrels a day.
Business is lean ahead of the Christmas holidays. Severe winter weather in the United States shut down a third of refining capacity in the Gulf Coast region of Texas. North Dakota has stopped producing up to 350,000 barrels of oil per day.
Weekly increase in WTI futures Source: NYMEX
After a volatile year rocked by the Russian invasion of Ukraine, the oil market is expected to finish the year higher.
West Texas Intermediate (WTI) futures for February delivery on the New York Mercantile Exchange (NYMEX) closed at $79.56 a barrel, up $2.07 or 2.7 percent from the previous day. February delivery of London ICE North Sea Brent closed at $83.92, up $2.94.
Money
The gold futures market rebounded. US economic data showed fresh signs of moderating inflation, fueling interest in a rate-hiking trajectory. The PCE core price index eased, but spending remained sluggish. A University of Michigan survey showed that short-term inflation expectations have declined further.
Gold is down about 12% from its March high on US monetary policy tightening and hawkish attitudes from major foreign central banks. Rising interest rates generally reduce the attractiveness of non-interest bearing gold.
“The latest US economic data has bolstered investor expectations that the disinflationary trend will continue,” said Ed Moya, senior market analyst at Oanda.
Gold futures for February delivery on the New York Mercantile Exchange (COMEX) closed $1,804.20 an ounce, up $8.90, or 0.5%, from the previous day. On a weekly basis, it rose 0.2%, its first gain since earlier this month.
Original title:Stocks post gains as traders cheer inflation data – markets close(extract)
Treasuries fall after mixed data, hold losses into early closing
Dollar set for weekly decline as inflation eases: within G-10
Oil posts second weekly gain as Russia warns of production cut
Gold advances as investors evaluate the path of Fed rates against US data
