News from the Financial Associated Press on December 24 (edited by Niu Zhanlin)Amid concerns about the Fed’s restrictive monetary policy and economic recession, major U.S. stock indexes closed lower again this week. Frustrated investors hope that the so-called Christmas market will come to soothe their wounded hearts. 20%.
With little economic data and corporate earnings to be released next week, and with many Wall Street traders on vacation, stock market liquidity is expected to drop to near its lowest levels this year.
“The absence of a ‘Santa Rally’ this month, replaced by a sustained sell-off, is a troubling sign,” DataTrek’s strategists wrote.
Keith Lerner, co-chief investment officer of Truist Advisory Services, pointed out that when the Christmas market does not come, it usually means that something in the market has caused confusion or faced obstacles, and the negative sentiment will not change because of the arrival of the new year.
Market moves will largely depend on whether inflation continues to cool and the Fed stops raising interest rates sooner than expected. The Fed’s favorite measure of inflation cooled on Friday as expected, but not enough to change the actions of Fed policymakers.
The Bank of Japan made a surprise decision this week to allow a benchmark interest rate to rise to 0.5 percent from 0.25 percent, ending its long days as the world‘s only major central bank that has not raised interest rates.
Market participants had expected that the Bank of Japan’s low interest rate policy may not have much time, but they generally did not expect Haruhiko Kuroda to take action at the last policy meeting of the year, and the summary of the monetary policy meeting will be provided to investors next Wednesday. more clues.
In terms of geopolitics, as the Russia-Ukraine conflict entered its 11th month, Ukrainian President Volodymyr Zelenskiy visited the United States, stating that he would continue to fight Russia and urged the United States to increase military assistance. The U.S. government said it would provide Ukraine with military aid worth $1.85 billion, including the Patriot air defense missile system.
Russia has intensified efforts to deliver personnel, military equipment and ammunition to combat zones by rail, the General Staff of the Ukrainian Armed Forces reported on Friday. The Russian army continued to concentrate its forces on the fronts of Liman, Bakhmut and Avdivka. Zelensky convened a meeting of the Supreme Command that day, at which the front-line commanders were briefed on the situation and prepared for the next few months.
Russian President Vladimir Putin previously announced that he will sign a presidential decree on December 26 or 27, announcing countermeasures against the West’s price cap on Russian oil, and will deliver a State of the Union address early next year.
Russian Deputy Prime Minister Alexander Novak said on Friday that the country may cut oil production by 5%-7% in early 2023 in response to Western price cap measures on Russian crude oil and oil products.
Overview of important events for the next week:
Monday (December 26): European and American stock markets are closed for the Christmas holiday
Tuesday (December 27): Unemployment rate in Japan in November, monthly rate of FHFA housing price index in the United States in October, annual rate of house price index in 20 major cities in the United States in October, Dallas Fed business activity index in December in the United States, and the Hong Kong Stock Exchange closed for one day day
Wednesday (December 28): ZEW Investor Confidence Index for December in Switzerland, Monthly Rate of Existing Home Sales Index for November in the United States, Richmond Fed Manufacturing Index for December in the United States, and the Bank of Japan announced the December Monetary Policy Meeting Review Committee opinion summary
Thursday (December 29): API crude oil inventories for the week ending December 23, initial jobless claims for the week ending December 24, EIA natural gas inventories for the week ending December 23, European Central Bank announcements economic bulletin
Friday (December 30): EIA crude oil inventory for the week from the United States to December 23, EIA strategic oil reserve inventory for the week from the United States to December 23, monthly rate of Nationwide house price index in the United Kingdom in December, and KOF economic lead in Switzerland in December Indicators, U.S. December Chicago PMI
Saturday (December 30): The total number of oil rigs in the United States for the week to December 30, China’s official manufacturing PMI in December