The S&P jumped to a two-year high on the news of the Fed’s decision, the Dow is close to an all-time high

By RockedBuzz 40 Min Read

Markets are tearing up on news of potential rate of interest cuts

Jerome Powell simply introduced at the press convention that the subject of rate of interest cuts was already mentioned at right this moment’s assembly, so this elevated the danger urge for food on the inventory markets much more, and the greenback was hit much more. The three main US inventory indexes are already up by over 1%, so the S&P is approaching its two-year peak and the spherical stage of 4,700 factors.

The Dow Jones index jumped close to 37,000 factors and thus reached its historic peak.

The S&P jumped to a two-year high on news of the Fed determination

As we write in our separate news feed: the Fed is projecting a whole reduce of 75 bp subsequent 12 months as an alternative of the earlier 50 bp, though this is nonetheless brief of the 100 bp anticipated by analysts, however even with this, the inventory indexes shot up and the comparatively dovish greenback started to fall to the news of the Fed determination. The S&P500 jumped 0.6% to 4,673 factors, a new almost two-year high, and the Dow and Nasdaq additionally rose with comparable depth.

S&P close to two-year high earlier than Fed determination

With the vital rise of the previous few days, the world’s most necessary inventory index, the American S&P500, reached its highest stage since January 2022, close to 4,650 factors. Today, the buyers are ready. So it is actually necessary what Fed President Jerome Powell says, i.e. whether or not the Santa Claus rally will proceed or whether or not a correction will begin.


Tesla and Pfizer shares fall

After the market opening, Pfizer’s share is in a vital decline, at present down 9 %. Investors are reacting so violently to the incontrovertible fact that the pharmaceutical firm revised its forecast for 2024, the place the firm’s revenue and income forecasts fell effectively brief of analysts’ expectations, primarily due to falling demand for coronavirus vaccines and associated remedies.


Tesla buyers may additionally be annoyed right this moment, as the share worth is down 1.8 %. The fall comes as Tesla is recalling greater than two million automobiles in America after a complete investigation by the National Highway Traffic Safety Administration (NHTSA) discovered that the Autopilot system didn’t constantly intervene in conditions the place the system sends warnings to the driver of the automobile in direction of.

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Minor actions on the European inventory markets

The day began with a smaller rise on the European inventory markets, as well as to the DAX rising by 0.1 %, the CAC additionally rose by 0.1 % and the FTSE 100 by 0.2 %.


Oil costs proceed to fall

The worth of Brent is getting decrease and decrease, up to now right this moment it is down 0.8 %. Jerome Powell’s message at right this moment’s press convention is seemingly to have a massive influence on the trade price, as the outlook for the rate of interest path is a vital influencing issue for the oil worth.


Bitcoin is falling once more

After yesterday’s rise, right this moment we will see a correction in the trade price of the most necessary cryptocurrency, bitcoin, which is at present down 2.2 %. This 12 months, nonetheless, the trade price has already risen by greater than 150 a whole bunch.

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Bitcoin trade price evolution

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Paging is potential in Europe

What are the present occasions on the inventory exchanges?

  • The main American inventory indexes closed yesterday with an improve, the Dow Jones ended the day up 0.5 %, the S&P 500 ended the day up 0.5 %, whereas the Nasdaq rose 0.8 %.
  • The temper on the Asian inventory markets is fairly dangerous this morning, though the Nikkei rose by 0.2 %, the Hang Seng is down 0.89 %, whereas the CSI 300 fell 0.33 %.
  • European inventory markets might open in an unsure temper, based mostly on the future inventory indices, the DAX might fall by 0.1 %, the CAC might rise by 0.2 %, whereas the FTSE might stagnate at the opening.
  • The American inventory futures indexes are forecasting a rise at the opening of the market, the Dow Jones might rise by 0.1 %, the S&P 500 might rise by 0.11 %, whereas the Nasdaq might open with a achieve of 0.13 %.

What may be anticipated on the macro entrance?

Today, after the British GDP, there is a manufacturing business knowledge from the EU, in the USA, the improvement of producer costs in November is introduced. The most necessary occasion of the week might be the central financial institution’s rate of interest determination in the night. According to expectations, the Fed won’t increase its key price any additional (though their present rate of interest forecast nonetheless promised a additional improve), the message have to be paid consideration to. The market is pricing robust rate of interest cuts for subsequent 12 months, and it is fairly potential that President Jerome Powell will need to dispel these expectations at the press convention. The central financial institution additionally publishes its newest forecasts. In this nation, the KSH publishes just one knowledge for the manufacturing business.

December 11-17, 2023. macro calendar
Hungarian macroeconomics
December12.Tuesday11:30 a.mAKK3-month dkj public sale
December13.Wednesday8:30 a.mKSHIndustry (second estimate)Oct.
December14.Thursday8:30 a.mMNBStatistical scaleNov.
December14.Thursday11:30 a.mAKKBond public sale
December15.Friday8:30 a.mKSHBuilding businessOct.
December15.Friday8:30 a.mMNBPayment board setQ3
December15.Friday8:30 a.mMNBMonthly fee stabilityOct.
December15.Friday22:00FitchCredit ranking
International macroeconomics
December12.Tuesday8:00 a.mUKUnemploymentOct.
December12.Tuesday2:30 p.mUSAInflationNov.
December12.Tuesday20:00USAState fundsNov.
December13.Wednesday8:00 a.mUKGDPOct.
December13.Wednesday11:00 a.mEUIndustryOct.
December13.Wednesday2:30 p.mUSAProducer costsNov.
December13.Wednesday20:00USAFed price determination
December13.Wednesday8:30 p.mUSAJerome Powell’s press convention
December14.Thursday13:00UKBoE rate of interest determination
December14.Thursday2:15 p.mEUECB rate of interest determination
December14.Thursday2:30 p.mUSARetail commerceNov.
December14.Thursday2:45 p.mEUChristine Lagarde’s press convention
December15.Friday3:00 a.mChinaIndustryNov.
December15.Friday3:00 a.mChinaRetail commerceNov.
December15.Friday9:15 a.mFrench.BMIDec.
December15.Friday9:30 a.mGerman.BMIDec.
December15.Friday10:00 a.mEUBMIDec.
December15.Friday10:30 a.mUKBMIDec.
December15.Friday2:30 p.mUSAEmpire State IndexDec.
December15.Friday2:45 p.mUSABMIDec.
Source: Portfolio assortment

What has occurred on the inventory markets up to now?

  • Among the main American, Asian, European and regional inventory indexes this 12 months, the Nasdaq index is at the prime with a 49.5 % shift, the Hang Seng index is the driving pressure with a 17.2 % fall.
  • Magyar Telekom’s share carried out finest amongst home blue chips this 12 months with an improve of 89.4 %, adopted by Richter’s paper with a 5.3 % improve.
  • Among the most necessary uncooked supplies, the worth of gold has risen by 9.2 % since the starting of the 12 months.
More necessary devices
Exchange priceOne day1 week1 monthThis 12 months1 12 months5 years
US inventory indices
Dow Jones36,577.940.5%1.3%6.7%10.3%7.6%49.1%
S&P 5004,643.70.5%1.7%5.2%20.9%16.4%75.2%
Asian inventory indices
Hang Seng16,374.51.1%0.3%-4.8%-17.2%-15.9%-37.5%
CSI 3003 426.80.2%1.0%-4.5%-11.5%-13.3%8.1%
European inventory indices
FTSE MIB30,342.15-0.3%0.9%6.4%28.0%24.8%60.2%
IBEX10 118.7-0.8%-1.2%8.0%23.0%22.5%14.3%
Regional inventory indices
Hungarian blue chips
Mol2 8041.7%-0.6%-1.4%7.8%8.7%-9.7%
Magyar Telekom6421.6%3.4%5.9%89.4%96.9%44.4%
Raw supplies
Foreign currencies
Bitcoin41 4580.5%-5.9%11.1%149.7%140.9%1 108.6%
Government papers
10-year US Treasury yield4.21-0.7%0.8%-9.2%9.8%16.4%44.7%
10-year German authorities bond yield2.2-1.5%-0.2%-17.8%-14.2%13.6%720.9%
10-year Hungarian authorities bond yield6.5-1.7%-1.1%-9.8%-29.7%-30.6%100.0%
Source: Refinitiv, Portfolio

Cover picture supply: Getty Images

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