US stocks closed with a weekly gain as traders expected a slowdown in wage growth to help the Federal Reserve fight inflation. All major indices rose by more than 2%. Treasuries increased after a US services gauge unexpectedly shrank at the end of 2022. The dollar is headed for the longest streak of weekly losses since November.
The December jobs report failed to paint a clear picture on the state of the US labor market, especially because it came one day after two jobs reports signaled continued tightness. Hiring exceeded estimates for the month and unemployment fell to the lowest in decades as shown by Friday’s report. Traders are continuing to mull how that strength contrasts with the weaker gains in hourly wages and what that means for Fed policy ahead.
Friday’s positive mood in the US spilled in Europe as well. The broad Stoxx 600 index, Germany’s DAX and the euro all rose by 1.2%. Inflation data showed a sharp drop in the eurozone. Separately, eurozone economic sentiment improved in December, with more optimism across all sectors of the economy and a sharp drop in inflation expectations.
Andrew Kenningham, chief Europe economist at Capital Economics said, “The fall in inflation and improvement in economic sentiment in December suggest that the euro zone’s case of stagflation is not as acute as feared a few months ago,”
Energy was the only sector that didn’t benefit from the global rise despite the dollar being sluggish that usually boosts oil prices. Both Brent and WTI were down more than 8% for the week. Both benchmarks had gained around 13% during the previous three weeks.
Disclaimer: Important Disclosures and Disclaimers. This report is intended for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell or a solicitation of any offer to buy any security. It is recommended that investors independently evaluate the strategies and consult a financial adviser before proceeding to the purchase or sale of any security or other financial instrument. Also note that past performance may not be a reliable indicator of future returns. Investors may not get back the original amount invested. This report has been compiled based on information that I believe is reliable, but the accuracy, completeness, or correctness cannot be guaranteed. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice.
The use of forward looking wording such as “expect”, “estimate”, “forecast”, involve known and unknown risks and uncertainties which may mean that the actual results may differ from any future results implied by the forward looking wording included in the relevant statement
Main line: (357) 22 256582
Brokers: (357) 22 275323
Fax: +357 22 262545
41 Archbishop Makarios III Avenue, Toumazis Makariou Tower, 1st Floor, Office 11, 1065 Nicosia, Cyprus
There is a high level of risk involved with trading leveraged products such as CFDs. You should not risk more than you can afford to lose, it is possible that you may lose all your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. If the risks involved seem unclear to you, please seek independent advice. For further details please refer to Financial Instruments Description and Associated Risks. The information contained in the website has been prepared by Emporium Capital K.A Limited, a Cypriot Investment Firm, operating under license number CIF358/18 issued by the Cyprus Securities and Exchange Commission, and, except otherwise specified herein, is communicated by Emporium Capital K.A Limited. Although this website is accessible worldwide, the publications are only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. The products and services referred to in the publications are not intended for recipients residing in countries where the provision of such products and services would constitute a violation of applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting a product or service to comply with all applicable legislation or regulations. >> view more