December 1, 2022
Stocks Cheered by Powell and China; Dollar Drops: Markets Wrap
Rising US stock futures signaled an extension of Wednesday’s hefty index gains fueled by China’s softer stance on Covid and confirmation of a slower rate-hiking pace from Federal Reserve Chair Jerome Powell. The dollar plumbed a three-month low.
S&P 500 contracts climbed 0.5%, a day after Powell’s comments helped the underlying benchmark close out November with a second month of gains for the first time in more than a year. Those on the tech-heavy Nasdaq 100 also advanced, after underlying gauge jumped 4.5% on Wednesday. European stocks rose to a six-month high.
EU Closes In on $60 Price Cap for Russian Oil as Deadline Looms
European Union states are starting to coalesce around a plan to cap the price of Russian crude oil at $60 a barrel, their latest attempt to clinch an agreement before a Monday deadline, according to people familiar with the matter.
The bloc is also looking at a mechanism that would allow for regular evaluations and potential revisions of the price every two months from mid-January 2023, the people added. Two of the people said that there should be an agreement that any future resetting of the cap should leave it at least 5% below average market rates. They didn’t go into detail.
Yen, Won Lead Asia FX Surge as Traders Gird For Slower Fed Hikes
Japan’s yen and Korea’s won spearheaded a surge in Asian currencies Thursday, as prospects for a slower pace of Federal Reserve rate hikes triggered broad weakness in the dollar.
The yen strengthened 1.1% to around 136.50 per dollar. The risk-sensitive won rose 1.5%, strengthening past the 1,300 level for the first time since August. The Bloomberg JPMorgan Asia Dollar Index climbed to a three-month high.
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.