UK CPI growth accelerates for the first time in 10 months
The UK consumer price index rose more than anticipated in December, sending the pound higher against all major currencies.
Hang Seng
Hong Kong's Hang Seng dropped on Wednesday as China's economy grew 5.2% in the fourth quarter from a year earlier, missing analysts' expectations of 5.3%. For the full year 2023, the economy grew 5.2%, data from the National Bureau of Statistics showed, surpassing Beijing's growth target of around 5%, partly helped by the previous year's low base effect.
December activity indicators
December activity indicators released along with the gross domestic product (GDP) data on Wednesday showed factory output growth quickened at the fastest pace since February 2022, up 6.8%, but retail sales grew at the slowest pace since September, by 7.4%. As for fixed asset investment, it grew 3%, marginally beating expectations of a 2.9% rise. NBS also said December new home prices fell at their fastest pace in nearly nine years, by 8.5%. New construction starts plunged 20.4%.
The UK consumer price index
The UK consumer price index rose more than anticipated in December, sending the pound higher against all major currencies. Headline consumer price index (CPI) rose 4%, the first acceleration in 10 months.
US retail sales
Over in the US, retail sales are forecast to rise by 0.3% in December month-over-month (MoM), at the same pace as the prior month. November's data suggested a relatively strong start to the holiday shopping season, with the biggest increase recorded in food services and drinking places, up 1.6%, and non-store retailers, up 1%. Industrial production is forecast to fall by 0.1% compared to the previous month. As for the National Association of Home Builders (NAHB) housing market index, it is expected to marginally rise to 38 in January from 37 in December. December, which was the first rise in five months.
US dollar
Meanwhile, the USD rose to a one-month high yesterday as Fed Board member Christopher Waller said the path of policy change must be carefully calibrated, not rushed.
His words come a day after Atlanta Fed President Raphael Bostic said inflation could "see-saw" if the central bank cuts rates too soon. After Waller's comments, Fed funds futures were pricing a 60% chance of a rate cut in March, down from about 70% earlier.
Galliford Try
Elsewhere on the equity market, Galliford Try now expects revenue to be around 5% higher than previous expectations, and Just Eat Takeaway.com raises its full-year profit forecast.
Alcoa
Alcoa will report after the US closing bell tonight. The Street anticipates a loss of 81 cents per share on revenue of $2.61 billion. 2023 was a tough year for the group, which only managed to publish one quarterly profit out of four. Sales haven't improved either, range-bounding all year between $2.6 billion and $2.7 billion.
Despite a slight rebound in the last three weeks of 2023, aluminum prices remained weak most of last year, mainly driven by concerns about the real estate market in China, which led to slower demand from the construction sector.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize your opportunity
Deal on the world’s stock indices today.
- Trade on rising or falling markets
- Get one-point spreads on the FTSE 100
- Unrivalled 24-hour pricing
See opportunity on an index?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on an index?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from one point on the FTSE 100
- Trade more 24-hour indices than any other provider
- Analyse and deal seamlessly on smart, fast charts
See opportunity on an index?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
