Market dynamics in the moment (futures):
📈 S&P 500: +0.24%
📈 Nasdaq: +0.39%
📈 Dow Jones +0.11%
🌕 Gold: +0.64% ($1761)
⚫️ Brent oil: +2.05% ($86.65)
🇺 US Treasuries 10 years: -0.11% (3.744%/year).
U.S. stock index futures are trading in the green zone at the premarket. The market participants are waiting for the big block of macroeconomic statistics and also for the speech of Fed chief Powell, who might announce more details about the future central bank policy. European stock indices are showing positive dynamics, Asian stock markets closed mostly in the green zone.
🔴 The price of gas in Europe for the first time since October 14 has exceeded $1500 per thousand cubic meters. Prices rose for the second day in a row as colder-than-normal weather signaled higher demand, threatening to accelerate depletion.
🔴 The German state of North Rhine-Westphalia has imposed a state of emergency amid the energy crisis. To solve economic problems, the regional government plans to take on €5 billion in debt obligations.
🟢 According to a preliminary estimate, consumer inflation in the eurozone slowed to 10% year-on-year in November from October’s 10.6%. In monthly terms, prices fell 0.1%. Both were better than economists’ expectations.
🟢 Chinese authorities eased travel restrictions in the manufacturing areas of Zhengzhou, home to Apple’s largest #AAPL iPhone plant.
🟢 According to Reuters, Saudi Arabia is planning a Sino-Arab summit with Chinese President Xi Jinping on December 9. China is expected to sign dozens of agreements of understanding on energy, security and investment with the Gulf and other Arab states.
🟡 HSBC #HSBC will close 114 branches in the U.K. from April 2023 due to the need to cut costs, as well as due to consumers switching to online banking. In addition, HSBC plans to sell its Canadian business to Royal Bank of Canada #RY for $13.5 billion.
💎 The stock market is consolidating ahead of Powell’s speech. It’s worth noting that most of the Fed officials who spoke earlier tried to convey to traders that it’s too early to talk about a reversal of the regulator’s hawkish policy. It is likely that the rhetoric of the head of the Fed will be appropriate. At current levels, we see that smart money (hedge funds) are actively reducing allocation to stocks, which is also why we are in no hurry to spend cash.