The United States has one week before default, and NVIDIA may become the next Tesla. What else drives the market?
Fed and ECB are Hawkish as Never
Hello, dear traders! Hope you a having a great Friday and can’t wait for a weekend! Let’s see what news can influence the market now.
Key Market events on December 16:
16:45 GMT+2, US Flash Services and Manufacturing PMI
The Fed and ECB aren’t going to quit
The Federal Reserve and the European Central Bank dashed dovish hopes by saying that rates will rise longer until inflation returns to its targets. While this conflicted with market expectations for a lower peak rate and potential rate cuts in 2023, it also clouded the upside outlook.
Economists now see a 60 percent chance of a recession in the US and an 80 percent chance in Europe. Stock market analysts downgraded their 12-month revenue estimates to the lowest levels since March and July, respectively.
The most popular currency pair, EURUSD, is continuing its uptrend. However, after a long period of rising, the price will most likely drop slightly. If the price continues to grow, it may reach 1.0780 and head to 1.1000. In case of reversal, the price might drop to 1.0490.
Other Important news:
- Two exchange-traded funds based on cryptocurrency futures will begin trading on the Hong Kong Stock Exchange for the first time.
- The US expects China, India, and Turkey to agree to buy Russian oil within the price limit set by the G7.
- The S&P 500 and Nasdaq 100 contracts fell about 0.8% each after the underlying index showed its biggest decline since November 2. The European Stoxx 600 fell to a one-month low.
- European natural gas prices eased as plentiful supplies, and high storage levels softened the effects of the first winter cold snap.
- A surge in infections throughout the country was provoked in China after the rapid lifting of restrictions due to Covid.
Stay tuned with FBS and have a great day!
Some progress in US debt ceiling talks is made, and the PMI data is out.
When will the US go bankrupt? Will it start the market crash unseen before? We have plenty to share with you, so let’s get started.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
The US dollar index breaks one resistance after another. Read the report to learn the next target for the US dollar index!