Early Morning Call: Equity indices up in thin volume
It's been a good start to the last day in global markets ahead of the long weekend. Although thin volumes are the dominating factor.
Yesterday US stocks fll with the Nasdaq sheding another 2.18%, comfirming its place as worst performing index in 2022. The Nasdaq has lost a third of its market-cap this year.
In Japan, consumer inflation hit a fresh 40-year high in November. Japan's core CPI, which excludes fresh food but includes energy costs, rose 3.7% in November from a year earlier, matching market forecasts. We have to go back to December 1981 to find a higher figure. The so-called "core-core" index, the indicator favoured by the BOJ which excludes both fresh food and energy prices, rose 2.8% in November YoY, accelerating from a 2.5% increase in October.
A few minutes after Japan CPI data, the BOJ published its meeting minutes, which revealed that the BOJ has been discussing the potential market impact of a future exit from ultra-low interest rates months before Tuesday's announcement
Earlier this week, the BOJ surprised the markets by tweaking its yield control and allowing long-term interest rates to rise more.
At the same time, BOJ Governor Haruhiko Kuroda has said the bank had no intention to roll back stimulus as inflation was set to slow below 2% next year.
A few US macroeconomic indicators are scheduled for publication this afternoon. At 1.30pm, personal income is expected to rise 0.3% in November MoM, personal spending is forecast to rise 0.2% in November MoM, durable goods orders expected to fall 0.6% in November MoM, and Core PCE price index expected to rise 4.7% In November YoY.
A bit later at 3pm, new home sales are forecast to fall 4.7% in November MoM.
In the oil markets traders await the latest weekly Baker Hughes data, to be released at 6pm. Last week, US energy firms cut the number of their operating oil and gas rigs for a second week in a row. The total rig count in the US fell by four to 776. The number of oil rigs in operation dropped by five to 620.
Despite last week's rig decline, Baker Hughes said the total count was still up 197 over the same time last year.
Gold remains around the $1,800 mark.
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