However, the Pound is declining against all its main competitors. The US Dollar Index this morning is slightly higher but has not crossed above yesterday’s highs. November’s poor GDP figures will not be enough to worry the Bank of England, however, December and January’s GDP figure will now become more vital! If next month’s data also disappoints, investors may start to price in a weaker monetary policy. However, the figure fell to -0.3%, the lowest since September 2023, sparking some doubt as to whether the BoE can hold rates “higher for longer”. The UK’s GDP was expected to decline from 0.2% to -0.1%. The price of the GBPUSD came under pressure this morning from the UK’s latest Gross Domestic Product. GBPUSD – The UK Economy Unexpectedly Contracts! However, the main event will be tonight’s Federal Reserve Press Conference. If the PPI reads lower than expected (0.2%), the Dow Jones could obtain short-term support. The price throughout the day will be influenced by the Producer Price Index, which looks at inflation at the producer level. These individuals may wait for a lower price or a larger retracement before speculating an increase. However, some traders may be concerned about the high price. The price also continues to trade within the upper side of the Bollinger Bands and Regression Channels, again indicating bullish price movement. Due to the weak momentum, and also bullish impulse waves forming, the instrument continues to remain in bullish territory. In terms of Technical Analysis, the price of the US30 is forming a downward facing retracement but is not showing any signs of strong momentum. Warren Buffet explained that the consumer goods market is recovering too slowly after the pandemic. Furthermore, Berkshire Hathaway has also advised they have recently sold their shares in the company. For example, the products will be withdrawn from Nigeria and Argentina. ![]() Analysts expect the company’s revenue and earnings per share to remain stable, but shareholders have taken badly to the company decision to withdraw from certain countries where the Dollar is now too expensive. One of the few stocks within the Dow Jones which have struggled is Procter and Gamble (holds a weight of 2.64%). ![]() However, most buyers are now investing, not due to a dovish policy, but due to the resilient economy and the likelihood of a soft landing. Without a dovish tone or a clear indication of a cut, the stock market may struggle to maintain momentum. Journalists will without doubt ask Chairman Jerome Powell if he believes interest rates will be cut in the first half of the year. The Federal Reserve policy makers will be able to discuss monetary policy issues tonight at 18:00 GMT. In comparison, of the top 20 influential stocks within the USA100, 5 stocks declined.Īs mentioned above, inflation read as most analysts were expecting, however it did not show any real signs of easing significantly over the next 2-3 months. Chevron fell by 1.28%, and the best performing stock was Salesforce, rising 1.73%. Investors should also note that of the top 20 influential assets within the US30, only 1 stock declined. The USA100 saw 68% of its stocks increase in value whereas 73% of the US30 appreciated. US30 Remains in the “Trend Zone” of Technical Analysis!Įven though the best-performing asset by far is the USA100, the asset experiencing the best performance in terms of components is the US30. However, investors are increasing exposure to the stock market as a “soft landing” becomes more likely. ![]() According to analysts, inflation is not low enough to prompt a pivot in the first quarter of 2024. Core Inflation has remained at 4.00% for a second consecutive month. ![]() The US inflation rate has declined from 3.2% to 3.1% but the core inflation rate remains stubbornly high. The main price driver was the US inflation data which more or less read as per expectations. The USA100 continues to be the best performing index, increasing by 0.90% and more than 50% in 2023 in total. The UK Economy Unexpectedly Contracts! US Inflation Remains Stubborn.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |