Market Analytics and Considerations
Key Notes
The publication of the FOMC notes from the most meeting held is likely to steal the show during Wednesday’s trading period. The report will be keenly investigated for more indications regarding the central bank’s plans for the future to tighten monetary policy. Following 4 successive 75 basis point rises, the Fed raised interest rates by 50 basis points previous month, bringing the overall number of rises to its benchmark policy rate to a band of 4.25%–4.5percentage points in 2022.
Markets will also likely be paying notice to the November JOLTs Available Jobs data. According to analysts, the new total will be 10.000M, rising from the previous 10.334M.
Also today, the ISM Manufacturing PMI for the United States will be released. According to analysts, the number will be 48.5 in December, a decrease from the previous reading of 49.0.
United States 10-Year rates are at 3.696% in the bond markets, dropping -2.54%.
As international investors evaluated regional economic data in advance of the publication of the notes from the most recent Federal Reserve meetings, the Euro Stoxx 50 futures are ahead +1.44% today morning, sustaining the bullish beginning of the year. German inflation decreased for a second month running in December to +8.6% y/y, according to economic statistics released on Tuesday. This helped the region’s markets feel more optimistic.
Today’s statistics included the CPI for Switzerland, the CPI for France (precursory), the Services PMI for France, Spain, Italy, Germany, the S&P Global Composite PMI for the Eurozone, and the Services PMI for the Eurozone.
As opposed to predictions of -0.2% m/m and +2.9% y/y, Switzerland’s December CPI was published at +2.8% y/y and -0.2% m/m.
German December Services PMI reading of 49.2 was higher than anticipated at 49.0.
S&P Global Composite PMI for the Eurozone for December was released at 49.3, exceeding estimates of 48.8.
December services for the euro PMI was 49.8, higher than the predicted value at 49.1.
The Asian equity markets ended neutral today. Japan’s Nikkei 225 Stock Index (NIK) shuttered down -1.45%, whereas China’s Shanghai Composite Index (SHCOMP) closed higher +0.22%.
