The US stock market bounced back after 4 consecutive days of declines, yet the USD is weakened, and the UST10Y yield touched its highest level this month in reaction to a surprise move from Japan’s central bank that plans to raise their long-term government bond yields by as much as 50bps.
The US stock market bounced back after 4 consecutive days of declines, yet the USD is weakened, and the UST10Y yield touched its highest level this month in reaction to a surprise move from Japan’s central bank that plans to raise their long-term government bond yields by as much as 50bps.
Monday’s lack of economic data made investors focus on the Fed’s Higher for Longer FFR. Speculation that the Fed again raised the FFR by +25 Bps in February and March 2023, pushing the Upper Bound FFR to the level of 5% while increasing the US economy in 1Q23 to become expensive.
Monday’s lack of economic data made investors focus on the Fed’s Higher for Longer FFR. Speculation that the Fed again raised the FFR by +25 Bps in February and March 2023, pushing the Upper Bound FFR to the level of 5% while increasing the US economy in 1Q23 to become expensive.
The anomaly in JCI’s strengthening is in contrast with the dimming of the Window Dressing outlook globally after the BoE and ECB continued their upward trend in interest rates, which rose by 50 Bps to 3.50% and 2.50%, respectively. From the domestic side, the strengthening in Energy Sector and the easing pressure on the Technology Sector made JCI appreciate more than 1% WoW.
SUN Market movement in a week, amidst the BoE and ECB continued their upward trend in interest rates, which rose by 50 Bps to 3.50% and 2.50%, respectively. The positive catalysts are the surplus of Indonesia’s Trade Balance in Nov. maintained at +USD5.16 billion and US economic data, such as flattening Headline Inflation and the Dec. FFR rise in line with market expectations.
US business activity contracted again as the high-interest rates trend weighed the economy, the Dow briefly depreciating by 500 points before finally closing down 0.85 last week. In addition to the Fed’s discourse in continuing the FFR hike above 5% in 2023, investors responded negatively to the release of S&P Global US Manufacturing PMI and Services PMI data in Dec., which contracted to 46.2 (vs. Nov. 47.7) and 44.4 (vs. 46.2), respectively.
The Fed expects a further FFR hike of above 5% in 2023, raising fears of a recession going further and lasting for a long period. Adding to the global recession fears, BoE and ECB continued their upward trend in interest rates, rising 50 Bps to 3.50% and 2.50%, respectively.
The Fed expects a further FFR hike of above 5% in 2023, raising fears of a recession going further and lasting for a long period. Wall Street has consistently moved in the red, with the Nasdaq weakening by 3%.
