MARKETS: Rising in Asia, dollar strengthening

The stock markets in the United States and Europe ended in decline yesterday, but the stock markets in Asia were on the rise on Wednesday.

In Japan, the Nikkei index rose by 0.4 percent, and in Hong Kong, the Hang Seng index rose by one percent. In mainland China, the rate of increase was two percent.

Long-awaited data on the labor market was received from the United States yesterday. The figures for November and October were once published late, as the administrative shutdown had messed up the collection of statistics in the fall.

In November, the United States added 64,000 jobs, while in October, jobs fell by 105,000 due to the contraction in federal employment. The unemployment rate rose to 4.6 percent from 4.4 percent in September, the highest level since 2021.

The labor market in the United States is now clearly in a more subdued mood than on average in recent years, although in a historical perspective one cannot yet speak of a major weakness. In any case, the labor market figures affect the Federal Reserve’s interest rate decisions.

The market is now giving a 20 percent chance of a new rate cut at the Fed’s January rate meeting.

Inflation figures will be published in the United States on Thursday, which will also affect the market’s interest rate expectations.

From Europe, today we will receive figures on British consumer prices, Germany’s IFO index and the final figures on November inflation in the Eurozone.

Tomorrow, Thursday, the European Central Bank will announce its own interest rate decision, which is expected to be neutral. The ECB is expected to keep the key interest rate at the current level of two percent well into the second half of next year, based on market pricing.

The Euro Stoxx 50 future was up 0.2 percent, anticipating a green opening for the European stock exchanges.

In the foreign exchange market, the dollar has strengthened by 0.4 percent against the yen and the pound, and by 0.3 percent against the euro.

You got 1.171 dollars for the euro and 155.37 yen for the dollar.