- Wall Street indices launched today's trading higher and gained further during the cash session after softer-than-expected US CPI reading for October boosted hopes that Fed is done hiking rates
- US CPI data for October showed a bigger-than-expected slowdown in headline measure, from 3.7 to 3.2% YoY (exp. 3.3% YoY), as well as an unexpected drop in core gauge from 4.1 to 4.0% YoY (exp. 4.1% YoY)
- Markets do not expect Fed to hike rates this year and price in almost 100 basis points of rate cuts for the next year, with the first 25 bp rate cut being fully priced in for June 2024
- S&P 500 is trading 2% higher on the day, Dow Jones gains 1.5%, Nasdaq jumps 2.3% while small-cap Russell 2000 rallies almost 5%
- European stock market indices traded higher today - German DAX surged 1.8%, French CAC40 jumped 1.4%, UK FTSE 100 moved 0.2% higher while Spanish IBEX rallied 1.7%. Polish WIG20 was Europe's top performer with an almost 5% gain
- According to a Bloomberg report, China is considering a stimulus package worth $137 billion aimed at supporting domestic housing market
- Second release of the euro area GDP report for Q3 2023 confirmed values from flash release and showed a 0.1% QoQ contraction
- IEA increased global oil demand growth forecast for 2023 from 2.3 million bpd to 2.4 million bpd. Forecast for 2024 was increased from 0.88 million bpd to 0.93 million bpd
- IEA also said that Chinese oil demand reached a record high of 17.1 million bpd in September
- German ZEW current conditions index ticked higher from -79.9 to -79.8 in November (exp. -76.9) while the expectations index jumped from -1.1 to +9.8 (exp. +5.0)
- UK earnings growth decelerated from 8.1 to 7.9% YoY in September (exp. 7.3% YoY), while core earnings growth (ex-bonuses) decelerated from 7.8 to 7.7% YoY (exp. 7.7% YoY)
- BoE Pill said that Bank of England may not need to raise rates further
- Fed Barkin repeated that he is not convinced inflation is on a smooth glide path to 2% and that he fears more needs to be done to curb demand and inflation
- Fed Goolsbee said that key to further progress on inflation is housing. He also said that this year may see the fastest non-war-related drop in US CPI in 100 years, with unemployment remaining below 4%
- Cryptocurrencies are trading lower today - Bitcoin drops 2.1%, Ethereum drops 2.8% and Dogecoin trades 3.2% lower
- Oil trades flat while US natural gas prices drop over 4%
- Precious metals gain on USD weakness with gold trading 0.9% higher, silver and palladium rallying over 3% and platinum adding 2.4%
- NZD and AUD are the best performing major currencies while USD and CAD lag the most
Small-cap Russell 2000 (US2000) is the best performing Wall Street index today, jumping almost 5%. Index broke above the upper limit of the bearish channel as well as 1,780 pts resistance zone today. Source: xStation5
