The main stock indices are reduced ahead of the Fed meeting
Analysts expect the Federal Reserve to announce an acceleration of QE program cuts today. This will allow the central bank to begin raising interest rates as early as next spring. Fed officials are expected to release a new forecast showing two or three interest rate hikes in 2022 and three or four more in 2023.
American Airlines plans to hire 18,000 people next year as it predicts a recovery in travel.
The WHO says that 77 countries have already reported cases of the Omicron variant, which is spreading faster than any other strain.
Crude oil prices continue to decline ahead of the Fed meeting and because of uncertainty in oil demand due to the Omicron option. Yesterday, the International Energy Agency (IEA) lowered oil demand estimates for the current and next year by 100 thousand barrels per day, noting that the emergence of a new strain of COVID-19 will slow but not stop the recovery in fuel demand.
Asian stock indexes are also declining as Omicron fears intensify and after China reported its first case of infection with the Omicron strain. China’s industrial production increased by 3.8% in annual terms in November, while analysts had expected a 3.6% increase. However, new restrictions to combat the rise in the disease hit retail sales. China’s retail sales increased by 3.9% last month compared to an increase of 4.9% in October. In Hong Kong, the government announced last weekend that those returning from the US must spend a week quarantined in a government facility. Hong Kong’s Hang Seng Index (HK50) decreased by 1.09%, Australia’s ASX 200 Index (AU200) decreased by 0.7%, while Japan’s Nikkei 225 Stock Index (JP225) added 0.10%.
S&P 500 (F) (US500) 4,634.09 −34.88 (−0.75%)
Dow Jones (US30) 35,544.18 −106.77 (−0.30%)
DAX (DE40) 15,453.56 −168.16 (−1.08%)
FTSE 100 (UK100) 7,218.64 −12.80 (−0.18%)
USD Index 96.57 +0.25 (+0.26%)
News feed for: 2023.07.04
- China Retail Sales (m/m) at 04:00 (GMT+2);
- China Industrial Production (m/m) at 04:00 (GMT+2);
- China Unemployment Rate (m/m) at 04:00 (GMT+2);
- UK Consumer Price Index (m/m) at 09:00 (GMT+2);
- Canada Consumer Price Index (m/m) at 15:30 (GMT+2);
- US Retail Sales (m/m) at 15:30 (GMT+2);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+2);
- Canada BoC Gov Macklem’s Speech at 19:00 (GMT+2);
- US FOMC Economic Projections at 21:00 (GMT+2);
- US FOMC Fed Interest Rate Decision at 21:00 (GMT+2);
- US FOMC Statement at 21:00 (GMT+2);
- US FOMC Press Conference at 21:30 (GMT+2);
- New Zealand GDP (q/q) at 23:45 (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.
