Early Morning Call: US dollar little changed ahead of CPI data
In the US, consumer price index is forecast to rise by 7.3% in November year-on-year, after a 7.7% increase the previous month.
Equity market overview
Equity markets mostly rose in Asia, after a positive session yesterday in the US.
Indices in Europe showed small gains at the beginning of today’s session.
Central banks
Trading is subdued on the currency market, ahead of the central bank decisions expected this week.
Today the US Federal Reserve (Fed) starts its two-day meeting. The market anticipates the Fed will announce a 50 basis point (bp) hike tomorrow, which would take the target rate to 4.25%-4.5%.
The Bank of England (BoE) and European Central Bank (ECB) are also expected to raise their interest rates by half a percentage point, to 3.5% and 2% respectively.
In Australia, Westpac consumer confidence increased to 80 in December, rising for the first time since September. The index remains close to the 2.5-year low of 78 recorded last month, and in contraction territory (below 100) for the 10th straight month.
NAB business confidence fell to -4 on November, the first time it went below 0 since December 2021.
As expected, the UK unemployment rate rose to 3.7% in October, from 3.6% the previous month. November's claimant count rose by 30,500. Economists expected 3,500.
Later this morning, Germany ZEW economic sentiment is forecast to rise to -26.4 in December, after -36.7 the previous month.
In the US, consumer price index (CPI) is forecast to rise by 7.3% in November year-on-year (YoY), after a 7.7% increase the previous month. Core CPI is expected to increase by 6.5%, unchanged compared to the previous month.
Elsewhere on the equity market, Pepco Group, the owner of discount retailer Poundland, reported a 14.3% rise in its annual core earnings. Revenue rose 17.4% to €4.82 billion, with like-for-like sales up 5.2%.
Gold Fields' Chris Griffith is stepping down as CEO and from the company's Board of Directors. The decision is effective from 31 December 2022.
Oracle Corp posted better-than-expected earnings and revenue in the second quarter (Q2). The group posted earnings of $1.21 per share. Total revenue rose 18.5% to $12.28 billion compared with expectations of $11.95bn.
Oracle benefited from strong demand for its cloud software services and the acquisition of electronic medical records firm Cerner. Acquired earlier this year for over $28 billion, Cerner contributed $1.5 billion to revenue in Q2.
For the third quarter, Oracle forecast revenue to rise between 21% and 23% in constant currency, while analysts expect growth of about 17.4%.
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