- Stock indexes recovered a lot of losses from the first part of the session, despite the hawkish tone of the minutes. Most members want a moderate approach in future decisions, pointing to a sizable risk of a rebound in inflation
- Fed members' expectations indicate that economic growth may slow down, but the labour market situation will remain solid, and inflation will probably remain on track to reach the 2% target
- At the same time, the FOMC minutes read focused partially on the uncertain political situation; Fed members signalled that it will be appropriate to hold off on decisions for a while to observe how the economy reacts to events related to customs policy and immigration
- The ADP report showed an increase in employment of 122,000, less than the 140,000 expected and less than the 146,000 in the previous reading. We saw a slight weakening of the dollar after the report, but the EURUSD still held near the 1.0300 level
- Unemployment claims fell to just 201k with expectations of an increase to 217k from 211k. The report shows a still very strong labor market. Yields on 10-year U.S. bonds settled around 4.7% today,
- The DOE report showed a decline in inventories of less than 1 million brk, with an expected decline of 2 million brk. Gasoline and distillate inventories both rose by more than 6 million brk. Crude oil is losing more than 1% on the day, having previously set multi-month highs.
- WTI crude tested the $75 level, and is now approaching $73 per barrel. The declines were also unleashed by comments from U.S. Secretary of State Blinken, who conveyed that a final Middle East peace agreement is achievable and that talks are moving in the right direction
- The gas inventory report was released a day early due to a day off on Thursday in the US. The report showed a drop in inventories of 40 bcf, with an expected drop of 39 bcf. The previous decline was 116 bcf.
- Gas gained more than 4% today due to gas consumption above average levels and low production, triggered by very cold temperatures
- The day off in the US on Thursday is due to the funeral ceremonies of former President Jimmy Carter
- Factory orders from Germany fell 5.4% mm on expectations of no change and a previous decline of 1.5%.
- German retail sales fell 0.6% m/m on expectations of a 0.5% m/m increase
- Comments by Nvidia CEO Jensen Huang indicated that quantum computers will come to market in a horizon of about 20 years, prompting a sell-off in shares of quantum computing companies. Shares of IONQ and Rigetti Computing are losing more than 40%.
- Meta Platforms (META.US) announced today that it will begin testing a feature in Germany, France and the United States that will allow Facebook Marketplace users to view listings from eBay (EBAY.US) and transact on the e-commerce site. eBay shares rise more than 9%
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