We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
American consumer confidence reaches 18-year maximum
In September, American consumer confidence ascended to an 18-year maximum because the country’s households became more optimistic as for the labor market, referring to sustained strength in the American economy notwithstanding an increasingly bitter trade clash between China and America.
While other Tuesday’s data revealed a moderation in house price jumps in July, the profits most likely remain sufficient to spur household wealth and keep backing consumer spending and also making home purchasing cheaper for first-time buyers.
The Conference Board told that its consumer confidence index edged up to an outcome of 138.4 in September from an upwardly updated 134.7 in August. It turned out to be the best outcome since September 2000. What’s more, the index isn’t far from an all-time maximum of 144.7 hit that year.
Market experts who were interviewed by Reuters had hoped that the consumer index would dive to an outcome of 132.0 in September from the previously uncovered 133.4 in August.
Additionally, consumers' assessment of labor market conditions steeply rallied because the trade conflict between China and America worsened and market experts told it would end up in job losses as well as higher prices for consumers.
On Monday, the US government slapped levies on $200 billion worth of China’s products, with the Chinese government repeating with levies on $60 billion worth of American goods. China and America had already slapped levies on $50 billion worth of each other's products.
Some market experts are assured that a tightening labor market that is starting to spur wage surge, while higher savings could ensure a cushion for US households against less affordable consumer imports from China.
The firm labor market, along with the firm economy as well as steadily ascending inflation, have left market experts confident that the Fed will lift interest rates on Wednesday for the third time in 2018.
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The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.