South Korea inflation, U.S. jobs report, China Covid-zero

November inflation in South Korea fell short of expectations

South Korea’s annual inflation for November came in at 5%, below estimates of 5.1% polled in a Reuters poll.

The latest reading marks slight easing from 5.7% in October and outside the all-time high of 6.3% seen in July.

– Jihye Lee

“Nobody wants to go up aggressively,” the analyst says, ahead of new jobs data due Friday.

Oanda’s senior market analyst, Edward Moya, said stocks were unable to sustain Wednesday’s rally as investors awaited a major jobs report on Friday.

He said investors deliberately pulled back ahead of nonfarm payroll data to be released in the morning. Investors will also be watching hourly wage and unemployment rate data.

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“US stocks failed to hold on to previous gains as Wall Street digested a host of economic data that showed inflation falling and the labor market cooling,” Moya said. “It’s been a good rally but no one wants to go up aggressively going into the NFP report.”

Megan Horneman, chief investment officer at Verdence Capital Advisors, said investors will be looking for accurate, middle ground data. This means that interest rate increases are weak enough to indicate that the economic contraction is having the intended effect, yet strong enough to indicate that a recession can be avoided.

“A figure that is too large to slow the pace of the Fed’s rate hikes will frighten markets even more,” said Megan Horneman, chief investment officer at Verdence Capital Advisors, on Friday’s jobs data.

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“With a figure like this, I think the markets can pick up on that,” he added. “But if you get a really weak number, it will startle investors after such a strong rally we saw in November.”

— Alex Harring

Indices exit winning month

With the market making a profit from November, Thursday was the first day of a new trading month.

this S&P 500 and Dow each posted gains for the second month in a row, up 5.38% and 5.67% respectively. This monthly series was the first for each since August 2021.

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this Nasdaq Composite It rose 4.37%, its second consecutive positive month. The tech-heavy index started a winning streak for the first time since seeing three consecutive wins ending in December 2021.

— Alex Harring

Core inflation gauge rose less than expected in October

The Bureau of Economic Analysts reported that the Core Personal Consumption Spending Index, a key indicator of inflation, rose 0.2% in October. This is less than the Dow Jones’ expected 0.3% increase.

Treasury bond yields fell after the report, amid optimism about easing inflation.

—Fred Imbert


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