[Condizioni del mercato statunitense]Stocks continue to rise, consumer confidence improves, earnings favor – 132 yen low range – Bloomberg

The US stock market continued to rally on the 21st. Improvements in consumer confidence and better-than-expected corporate earnings were well received.

The S&P 500 index rose 1.5%. The Nasdaq 100 index, dominated by technology stocks, has risen sharply since late November. However, both indices recorded the largest annual declines since 2008.

US consumer confidence rose to its highest level since April through December. Against the backdrop of easing inflation and falling petrol prices.

US consumer confidence index beats expectations in December, eight-month high (2)

Earnings from FedEx and Nike, announced after the previous day’s close, beat market expectations, providing some support. US equities have sold off sharply since the Federal Reserve reaffirmed its hawkish stance last week.

Mike Bailey, director of research at FBB Capital Partners, said the market fell last week on worries about US monetary policy. “Improving consumer confidence has also led to a turnaround in investor sentiment in macro data, but inflation, the job market and corporate earnings are the top concerns for most investors at the moment” , he has declared.

Data on personal consumption expenditure (PCE) will be released on the 23rd.

“We’ll see if consumption and income hold up against inflation,” said David Donabedian, chief investment officer at CIBC Private Wealth US. “But the PCE numbers should slow down,” he said.

US treasures

Treasury prices were mixed, with yields on 2-year monetary policy-sensitive bonds falling more than 10-year ones. The market was selling off sharply the day before after the Bank of Japan widened the allowable range of long-term interest rates.

foreign currency

The yen fell in the foreign exchange market. Part of the previous day’s uptick due to the Bank of Japan’s unexpected policy was cancelled. Against the dollar, the price fell to 132.53 yen at one point.

Christopher Wong, a strategist at Oversea Chinese Bank, said the dollar/yen was “a small rally after yesterday’s drop of more than 4%. Currency moves have not been one-sided and market liquidity is volatile with approaching the end of the year”. a strange move because it is in decline”.

“Given the rapidly changing landscape, we see risks to the yen upside,” Wynn Singh, global head of currency strategy at Brown Brothers Harriman, said in a statement. The yen is likely to rise to 126.35 yen against the dollar in the near term.

Eric Nelson, a currency strategist at Wells Fargo & Co., said the yen would likely rise, but would find it difficult to move further from around 120 to 100. “If large amounts of money return to Japan from overseas, it could lead to a increase from about 125 yen to 100 yen,” he told Bloomberg Television. “However, this hinges critically on continued inflation in Japan, fairly robust growth and the Bank of Japan pushing nominal yields at least a little higher.”

The pound also weakened on this day. Data shows that the UK’s budget deficit has widened.

raw

The New York crude oil futures market continued to climb sharply, hitting a two-week high. The decline in crude inventories in the United States was more than expected. U.S. crude stockpiles fell by 5.9 million barrels last week, the Energy Information Administration (EIA) said on Thursday.

In the crude oil market, there is a risk that the economies of the United States and the European Union (EU) will fall into recession (recession) due to further interest rate hikes, and the October-December quarter (Q4 ) was the first of two quarters in a row since 2019. Down.

The market is also aware of the impact of China’s easing of strict COVID-19 restrictions and warning messages from Saudi Arabia. Saudi Arabia’s Energy Minister said the Organization of the Petroleum Exporting Countries (OPEC) and OPEC+ non-member oil producers would continue to act proactively and preemptively to manage the global oil market.

OPEC+ will continue to act aggressively and preemptively: Saudi minister

West Texas Intermediate (WTI) futures for February delivery on the New York Mercantile Exchange (NYMEX) closed at $78.29 a barrel, up $2.06 from the previous day. Ahead of the full-scale holiday season, trading volume is at its lowest level since May. February delivery of London ICE North Sea Brent rose $2.21 to close at $82.20.

Money

New York gold futures are flat. The day before, the Bank of Japan’s unexpected policy shook the financial markets, the dollar fell, and the gold market soared.

Trouble talking to market due to BOJ review of monetary easing – some complain ‘confidence has been lost’

Traders are turning their attention to a slew of US economic data to be released this week. The Fed’s Personal Consumption Expenditure (PCE) Price Index, the Fed’s preferred measure of inflation, was released on Thursday and could provide clues about the trajectory of future rate hikes.