Market Considerations and Analytics
Key Notes
In jittery trading on Friday, European stock indexes slightly declined as investors focused on the most recent U.S. inflation data amid mounting recession concerns.
At 4:00 ET (09:00 GMT), the DAX index in Germany traded unchanged, while the CAC 40 in France and the FTSE 100 in the UK both experienced a 0.1% decline. decreased 0.3%
Equity markets have had such a challenging week as investors fretted that tighter monetary circumstances will probably lead to a worldwide recession in 2023. The wide ranging S&P 500 index is expected to lose 2.6% on Wall Street and the DAX index in Frankfurt is expected to lose 1.8%.
The United States will have talks to set policies next week. Both the Federal Reserve and the European Central Bank are anticipated to raise interest rates once again in order to combat the inflation that is still at significant levels.
Late in the day on Friday, the U.S. producer price inflation numbers will be the main focus as analysts look for additional hints regarding the state of the American economy.
PPI is anticipated to have risen 0.2% month over month in November, representing a 7.2% annual increase—a decrease from the previous month’s 8.0% increase.
In Europe, Spain’s industrial production increased 2.5% on a yearly basis in October, down from the 3.6% growth recorded in September.
Due to concerns that the world economy may experience a recession in 2023, crude oil prices steadied Friday near one-year low points and are still expected to end the week with significant losses.
Though the supply interruption isn’t anticipated to persist long, the news that the Keystone pipeline between the United States and Canada was shut down following an accident in Kansas improved mood.
U.S. oil futures were trading 0.2% better at $71.60 per barrel around 4:00 ET, while the Brent contract was trading 0.1% up at $76.22 per barrel.
Having previously plummeted to their worst levels since December 2021, the two contracts were also expected to lose nearly 10% this week.
The price of gold futures also increased by 0.1% to $1,803.50/oz, and the EUR/USD exchange rate moved up by 0.1% to 1.0562.
