Analysts say that this week (19-23), the US New York stock market is very likely to continue the subdued mood following last week’s regular Federal Open Market Committee (FOMC) meeting. Investors, who were keenly aware of whether or not inflation should be curbed, are leaning toward the economic downturn next year.
Last week, the three major stock markets fell for the third consecutive trading day following the FOMC meeting. The negative equity market outlook continued after the US central bank (Fed) made clear it would continue its long-term tightening until the 2% inflation target is met. Indices for retail sales and manufacturing and services prospects worsened, fueling recession fears.
Several indicators related to housing are released this week, including the US Home Price Index and Pending Home Sales. Although the housing market has cooled recently, inflation is slowing relative to other indicators. If the indicator turns out to be significantly worse than market expectations, fears of a recession could increase. Later in the week, the US Fed’s preferred inflation gauge, the November Personal Consumption Expenditure (PCE) price index, will be released. Wall Street expects the core PCE price index excluding energy and inflation to rise 0.2% MoM and 4.7% YoY.
Big companies like Nike, FedEx, and Micron are also expected to announce their third-quarter earnings.
New York = Correspondent Jeong So-ram
