Market Overview - Page 98

In recent months the Fed has repeatedly taken a more hawkish stance than the markets expect. However, the markets’ preparation for yesterday’s meeting and the signal we read in the official commentary were too strikingly different from the markets’ interpretation.

Fresh ADP estimates noted a 239K increase in US employment in October, showing more substantial job growth than in September (192k), contrary to the expected slowdown to 178K. This data primarily guides traders as the most similar indicator before the.

The Reserve Bank of Australia duplicated its move of a month ago by raising the rate by 25 points to 2.85%, in line with economists’ average expectations. This contrasts sharply with a 75-point rate hike from the ECB and expectations.

Gold retreated to $1633 by the start of this month, close to the lows of September and October, but gained about 1% surpassing $1650. We saw a similar buying spree the month before, and such buying activity looks like a.

Eurostat’s preliminary estimate indicated an acceleration of annual inflation in the euro region from 9.9% immediately to 10.7%. Economists, on average, expected no change, and this difference of 0.8 percentage points is one of the most prominent indicators economists predict.

Americans’ Personal spending rose 0.6% in September, the same as a month earlier, while income growth was up 0.4% in each of the two months. Total earnings grew 5.2% YoY, as did earnings, whereas due to a cutback in tax.

Markets will likely remember this week as uncrowning of Techs. On Friday, the failures of Meta, Google, Alphabet and Microsoft were joined by Amazon, whose shares lost more than 20% at one point after the quarterly report. The only bright.

The Dow Jones is up 4.6% in the past five days versus 0.7% for the Nasdaq-100. And this divergence in momentum may continue as long as monetary authorities remain in the regime of containing inflation rather than pushing it up.

As most observers assumed, the ECB raised its key rate by 75 points to 2.0%. These are low rates by modern standards, but the eurozone last saw such rates 14 years ago. Furthermore, the central bank indicated its intention to.

As we previously warned, major central banks worldwide that hold massive amounts of dollar securities are stepping up interventions to support their national currencies. On Wednesday, China, Japan, and Switzerland resorted to such measures. The UK and India used earlier.

There was an important signal today that monetary authorities in North America are ready to ease the pace of policy tightening faster than the market expects. The Bank of Canada raised the rate by 50 points to 3.75%, although analysts,.

The US housing sector has entered a cooling down phase, giving rise to sometimes very alarmist comments that this is the beginning of a significant collapse, comparable to the failure during the global financial crisis. But we don’t tend to.