The shadow of a Santa Claus rally has returned to the markets. At the close of the stock market on Thursday, the Dow Jones (US30) increased by 1.05%, and the S&P 500 (US500) added 1.75%. Technology Index NASDAQ (US100) jumped by 2.39%.
According to the US Department of Labor, the number of Americans filing for unemployment insurance rose in line with expectations last week. Seasonally adjusted initial jobless claims for the week rose from 216,000 to 225,000.
Stock markets in Europe were mostly up yesterday. Germany's DAX (DE30) gained 1.05%, France's CAC 40 (FR40) added 0.97%, Spain's IBEX 35 (ES35) closed up by 0.68%, and Britain's FTSE 100 (UK100) gained 0.22%.
The European Union's Health Safety Committee called for joint action on a potential spike in COVID-19 cases as China begins to lift its long-standing strict restrictions on the pandemic. The statement came after the US and Italy on Wednesday joined a list of countries, including Japan, India, South Korea, and Taiwan, requiring confirmation of negative COVID tests for arriving air passengers from China. Shares of German Deutsche Lufthansa (LHAG), as well as other airlines Air France KLM (AIRF) and International Consolidated Airlines Group (ICAG), fell sharply on the trading day.
Inflation data will be released today in Spain. Annualized consumer prices are expected to fall from 6.8% to 6.1%. Spain is one of the few European countries that have seen a monthly and gradual decline in inflationary pressures.
China's loosening of the Covid Zero policy has led to a significant increase in oil prices over the past few weeks, but the recent rise in cases has raised concerns worldwide. There are fears that Covid could start to spread again, as some countries are already announcing special requirements for Chinese travelers. In addition, crude oil inventories increased by 700 thousand barrels last week, which put further pressure on oil prices yesterday.
Asian indices were mostly down yesterday. Japan's Nikkei 225 (JP225) decreased by 0.94%, China's FTSE China A50 (CHA50) fell by 0.68%, India's NIFTY 50 (IND50) gained 0.38%, Hong Kong's Hang Seng (HK50) decreased by 0.79%, and S&P/ASX 200 (AU200) closed down by 0.94%.
The Bank of Japan announced two additional rounds of unscheduled bond purchases, suggesting that measures aimed at doubling the yield cap on government bonds are leading to continued stimulus rather than a change in the trajectory of monetary policy. On the other hand, a broader and more frequent Bank of Japan presence in the market risks damaging liquidity and further distorting the yield curve. Analysts believe that control of the yield curve is approaching its limit, but the central bank does not acknowledge this.
Hong Kong's exports fell to their lowest levels in nearly seven decades in November as China's economic slowdown and global demand worsened. Shipments overseas last month fell by 24.1% from a year earlier. Imports fell by 20.3% in November from a year earlier, the biggest drop since 2009.
S&P 500 (F) (US500) 3,849.32 +66.10 (+1.75%)
Dow Jones (US30) 33,220.87 +345.16 (+1.05%)
DAX (DE40) 14,071.72 146.12 (+1.05%)
FTSE 100 (UK100) 7,512.72 +15.53 (+0.21%)
USD Index 103.89 -0.57 (-0.55%)
- – Switzerland KOF Leading Indicators (m/m) at 10:00 (GMT+2);
- – Spanish Consumer Price Index (m/m) at 10:00 (GMT+2).
by , 2022.12.30
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