Wall Street's main indices showed strong gains yesterday, with the S&P 500 closing at an all-time high. The positive for the market is the fact that the concerns of investors at the expense of the seriousness of economic consequences on the Omicron variant decreases. The Dow Jones Industrial Average (US30) gained 0.55% yesterday, the S&P 500 (US500) added 0.62%, and the Nasdaq Composite Technology Index (US100) jumped by 0.85%. Today is a bank holiday in the USA due to the Christmas holidays.
The US stock markets are outperforming stock markets in the rest of the world by most measures in 2 decades.
According to Wells Fargo, the US Federal Reserve will begin raising interest rates in the second half of 2022.
The US airlines United Airlines and Delta Air Lines were forced to cancel more than two hundred flights on the eve of the holidays due to massive COVID-19 infection of flight crews and other workers. United Airlines canceled 120 flights, and Delta Air Lines canceled about 90 flights.
European stock indexes followed the US ones yesterday. Germany's DAX (DE30) gained 1.04%, Britain's FTSE 100 (UK100) added 0.43%, France's CAC 40 (FR40) increased by 0.77%, and Spain's IBEX 35 (ES35) jumped by 1.2%. Inflationary pressures continue to rise in Germany. Import prices in Germany increased to 24.7% in annual terms in November. Monthly import prices jumped by a colossal 3% in November, which is three times more than the evaluation. The UK auto production in November 2021 fell to 28.7% in annual terms and amounted to only 75,800 cars, the worst one since November 1984. Today is a short banking day in Europe, and volatility in financial markets will decrease.
The Hungarian Central Bank raised interest rates for the 6th time in the last few months to stop inflation and weaken the national currency. The Hungarian forint has lost 2% against the euro and 9% against the dollar since the beginning of the year.
Amid falling natural gas futures, the price of gas in Europe fell below $1600 per thousand cubic meters.
Yesterday, oil prices continued to rise as the "Omicron" strain was brought under control, which strengthened the prospects for oil demand. The WTI crude futures increased by 1.4% to $73.76 a barrel yesterday. WTI crude oil rose by 4.3% for the week.
Asian stock markets are trading without single dynamics today. Japan's Nikkei 225 index (JP225) decreased by 0.05% in today's trading, Hong Kong's Hang Seng index (HK50) increased by 0.13%, while Australia's main index ASX 200 (AU200) added 0.44%. Japan's core consumer price index posted its biggest year-over-year increase in nearly two years in November due to higher fuel prices, signaling the widening impact of rising global commodity prices. Core inflation, which excludes food prices but includes the cost of oil prices, increased by 0.5% in November. However, this increase is unlikely to prompt the Bank of Japan (BOJ) to reduce monetary stimulus anytime soon since inflation is still far from the central bank's 2% target.
Main market quotes:
S&P 500 (F) (US500) 4,725.79 +29.23 (+0.62%)
Dow Jones (US30) 35,950.56 +196.67 (+0.55%)
DAX (DE40) 15,756.31 +162.84 (+1.04%)
FTSE 100 (UK100) 7,373.34 +31.68 (+0.43%)
USD Index 96.04 -0.03 (-0.04%)
- - Japan National Core CPI (m/m) at 01:30 (GMT+2).
by 2021.12.24, We advise you to get acquainted with the daily forecasts for the major currency pairs.
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