Daily Digest:
w/c 4 March 2024: US stock averages higher again to end the week, prodding at record levels; upcoming week's focus on the Fed's Powell testimony before Congress and the US Employment report

Stocks drop with hawkish Powell

Intermediate

Macroeconomic/ geopolitical developments

  • Federal Reserve hikes 75bp again but signals possible slowdown of pace of hikes.
  • But Chairman Powell makes hawkish comments regarding a higher than expected rate peak.
Jerome Powell
  • US Employment report shows more jobs added that anticipated, though the Unemployment rate was higher than consensus.
  • Conflicting rumours abounded regarding the possibility of China moving away from its zero-COVID policy.
  • The Eurozone YOY inflation rate accelerated by more than expected to 10.7% in October.
  • The Bank of England (BoE) increased interest rate by 0.75%, the biggest hike for over 30 years, up to 3%, the highest since 2008

Global financial market developments

S&P500 chart
  • European equity indices were lower too.
  • The Chinese stock market whipsawed with the conflicting rumours regarding a shift away from a zero-COVID policy.
  • US 10yr yields were higher again, back close to its recent high!
  • US Dollar was erratic, as DXY rallied then setback.
DXY chart
  • Gold plunged and surged to ease negative pressures.
  • Oil prices rallied close to a multi week high.
  • Copper surged to the top end of the wide consolidation range.

Key this week

  • Geopolitical Events: The US midterm elections are on Tuesday. Friday 11th November is US Veterans Day, Bond markets are closed
  • Central Bank Watch: No Central Bank activity of note.
  • Macroeconomic data: A quiet week overall, but Thursday’s US CPI release is huge!.
DateKey Macroeconomic Events
07/11/22China trade data
08/11/22US midterm elections; EU Retail Sales
09/11/22China CPI
10/11/22US CPI
11/11/22UK GDP; German CPI; US Veterans Day, Bond markets closed

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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