Fed may raise interest rates if inflation continues to rise
The number of new jobless claims in the US was 199,000; analysts expected 260,000. The estimate of the U. GDP growth was improved to 2.1% from 2% in the third quarter; a revision to 2.2% was expected. The US household income increased by 0.5% in October as compared to the previous month according to the US Department of Commerce. At the same time, Americans’ spending increased by 1.3%. Sales of new homes in the US in October increased by 0.4% over the previous month to 745,000 in annual terms.
Federal Reserve meeting minutes showed that policymakers are willing to raise interest rates if inflation continues to rise. Fed officials concluded that easing inflationary pressures may take longer than they had previously estimated.
Oil stabilized after the US announced an agreed release of strategic stocks with other countries, which failed to meet expectations. The focus is now on OPEC+ and how the group will respond to the move. The alliance has said that releasing reserves is an unwarranted move because of current market conditions. In addition, they suppose that OPEC+ may have to revisit plans to increase supply at its monthly meeting. OPEC+ is scheduled to meet Dec. 1-2.
New White House sanctions on Nord Stream 2 seem likely to have limited effect but will exacerbate the political problems that Europe’s supply chain faces ahead of an uncertain winter.
Asian stock indexes are growing today. Japan’s Nikkei 225 index has increased by 0.67% since the market opened, Hong Kong’s Hang Seng has added 0.24%, and Australia’s ASX 200 has added 0.11%. Meanwhile, China’s benchmark CSI 300 index has decreased by 0.41%. The growth leaders among Asian companies were Sony and Alibaba.
S&P 500 (F) 4,701.46 +10.76 (+0.23%)
Dow Jones 35,804.38 −9.42 (−0.03%)
DAX 15,878.39 −58.61 (−0.37%)
FTSE 100 7,286.32 +19.63 (0.27%)
USD Index 96,82 +0.33 (+0.34%)
News feed for: 2023.07.04
- Germany GDP (q/q) at 09:00 (GMT+2);
- Eurozone ECB Monetary Policy Meeting Accounts At 14:30 (GMT+2);
- Eurozone ECB President Lagarde’s Speech at 15:30 (GMT+2);
- UK BoE Gov Andrew Bailey’s Speech at 19:00 (GMT+2).
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.
