The Analysis on 13 October: US Macro Economy

KyleRodda
2022-10-13

Your morning market wrap. All eyes are on US CPI.

Stocks:

Another down day for Wall Street. The S&P 500 dropped 0.33% to dropp to newlows, while the NASDAQ was practically flat. FOMC minutes sparked a brief flurry. However,investors remain braced for tonight's US CPl data. SPlFutures are pointing to an18 pointdrop for the ASX200 this morning.

Rates/bonds:

lmplied volatility in the bond market pushed to new highs. Yields dropped marginally, with the US 10 year falling 5 points to 3.89%. FOMC minutes delivered the "higher for longer” message, however some members agreed it was important to eventually"calibrate the pace" of hikes to balance risks to economic activity. Rate expectations didn'tmaterially change, with market pricing suggesting a peak in the Fed Funds Rate of around 4.75%. All eyes on US CPl now. it's expected to print at 8.1% on a headline basis, and showan increase in core CPl to 6.5%.

FX:

The US Dollar Index was flat, largely by virtue of a steady Euro.The Pound's wild ride continues though, with the currency climbing 1.1%, as nervousness prevails ahead of the possible exit of the BOE from the Gilt market.The Yen also plunged to around 147 - a new 24 year low - as BOJ Governor Kuroda vowed further loose policy. The AUD/USD remains around 62 cents.

Commodities:

Oil prices declined after OPEC+ cut its demand forecasts by 460,000 barrelsper day for this year and 360,000 barrels per day for next year.Brent fell 1.9% to aroundsus92.50. Gold bounced 0.4% to be currently fetching sus1670.

Crypto:

Little movement in Bitcoin prices which remains in the low $US19,000s.

$S&P 500(.SPX)$  $DJIA(.DJI)$ $NASDAQ(.IXIC)$

Follow me to learn more about analysis!!

Macro Trend
Monetary policy, various types of price indices... Here is everything about the macro economy!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • smee
    2022-10-13
    smee
    good analysis
  • Bobster
    2022-10-13
    Bobster
    one big number coming up
  • Andie8392
    2022-10-17
    Andie8392
    thanks for sharing.. good post
  • LenaNg
    2022-10-13
    LenaNg
    Thank you for analyzing
  • khiong
    2022-10-16
    khiong
    😃😃
  • stkwok
    2022-10-14
    stkwok
    like
Leave a comment
21