Trading Review: Ongoing Reports, Trends, Indices, Stocks, Bonds, Forex and Commodities and Analyst Recommendations
Slight declines in European stock indices. Trading in US stock market indices is stable.
Oil contracts are trading steadily and gold is falling slightly.
Following the publication of the Fed’s beige book yesterday, Ronen Menachem, Mizrahi Tefahot’s chief economist, writes that “the beige book did not move the markets too much, but I find in it a number of points that can moderate the concept of sharp and rapid monetary restraint this year. The growth rate is still not exciting, but “modest” as he defines it. This picture does not change. “Coming in line with the economic weakening that the World Bank expects for 2022 and 2023.”
Second, Menachem writes, “In an excellent report that has not yet felt the impact of Omicron on private consumption, which has maintained a steady growth rate towards the end of the year. This year. “Indeed, according to the report in several U.S. counties, growth expectations are cooling for the coming months. Third, and this is an important point, in my opinion. Consumer prices continue to rise, according to the report, but there are counties that indicate that compared to previous months, prices have moderated slightly.”
Meanwhile, “there are also reports of stabilization of pressures from the bottlenecks of supply. True, the difficulties in staffing jobs and wage pressures are also prominent in the new report and indeed they are responsible for the bulk of US inflation. However, it is precisely the sharp decline in unemployment that will, in my opinion, cause more people to return to the labor market, which will increase supply and ease the pressure from this direction sooner than expected. Bottom line, the Beige book has not had an immediate impact – markets currently have more ad hoc concerns – but I would not be surprised if in a few months it turns out that it was the first to spot signs of rising prices and too rapid a rise in US interest rates.
The trading day on the European stock exchanges opened with slight declines in the stock indices. Trading in US stock market indices is down 0.2%.
The yield on 10-year US government bonds rises slightly to 1.75%.
Asian stock exchanges are painted red today. The Nikkei in Tokyo retreated 0.8% after a 2% jump yesterday. Heng Seng is down 0.2%.
Contracts with US stock indices are slightly declining.
The share of Chinese real estate company Sonak is down about 15%, after the company announced that it intends to raise about $ 580 million by issuing shares in Hong Kong.
Last night, Wall Street closed trading with a slight increase of 0.1% -0.3% in the leading stock indices. This is after the publication of inflation data in the US before the opening of trading, and ahead of the reporting season of 2021, which will open on Friday with the publication of the results of some of the major banks.
Oil prices are down slightly, after sharp rises yesterday. A March contract for Brent crude is down 0.3 percent to $ 84.4, after rising $ 71.5 a barrel on Dec. 20. Gold is trading steadily.
In the crypto arena, Bitcoin is down slightly and is trading around $ 43,700.