Stocks in the United States opened neutral ahead of the Federal Reserve meeting.
The latest Forex news for Wednesday trade session on December 15, 2021.
Stocks are trading neutral after retail sales fell short of expectations and as investors anticipate the Fed’s statement.
Dow futures -0.08% at 35528
S&P futures -0.02% at 4637
Nasdaq futures +0.03% at 15934
FTSE -0.31% at 7204
Dax +0.2% at 15513
Euro Stoxx +0.64% at 4171
Retail sales are slowing.
US markets are off to a mixed start following poor retail sales data and as investors await the Fed’s pronouncement later today.
Retail sales increased by only 0.3 % month on month in November, a significant decrease from the 1.8 % increase in October. Retail sales are often volatile, and October was particularly robust. While sales increased in November, they did so at a slower rate than projected, which could be an indication that rising prices are beginning to hurt.
Today’s swings in futures are rather muted ahead of the crucial Fed meeting. With PPI and CPI at nearly four-decade highs, the market expects the Fed to accelerate the pace at which it is decreasing its purchases. This would bring the program to a conclusion by March, implying that the Fed will boost rates in the middle of the year, leaving plenty of time for one, if not two more hikes in the second half of the year.
While the Fed is undeniably the market’s primary focus today, Omicron fears remain. The World Health Organization’s remark that COVID vaccines may be less effective against Omicron was information that the market already had, but it has added to the market’s pessimistic tone.
In corporate news, Eli Lilly surged 5% pre-market after upgrading its full-year 2021 earnings and sales projection, thanks in part to a deal with the US government for its COVID antibody treatment.
FX – USD rises, GBP rises as CPI hits 5.1%
The USD is edging a few pips higher, building on gains from the previous session after strong PPI and ahead of the Fed meeting later today.
GBP/USD is rising as investors increase bets that the BoE will hike interest rates tomorrow after inflation surged to 5.1%. Decade high inflation, plus payrolls back at pre-pandemic levels could encourage the BoE to act, despite Omicron fears.
GBP/USD +0.13% at 1.3255
EUR/USD +0.13% at 1.1273
Oil continues to fall for the third day in a row.
Oil prices are falling for the third day in a row as Omicron fears continue to plague the market. According to the World Health Organization, COVID vaccinations may be less effective against Omicron. The International Energy Agency has warned that the spread of Omicron will reduce world oil demand, notably in the United States.
However, OPEC remain relatively upbeat on the look picture.
API data yesterday showed that crude stock piles fell by 815,000 compared to a 2.1 million barrel drop expected, which offered some support to the price.
EIA stock pile data is due shortly.
WTI crude trades -0.1% at $70.95
Brent trades -0.01% at $74.30
Markets News :
- AUD leads, JPY lags on the day
- European equities mostly higher; S&P 500 futures flat
- US 10-year yields up 1.4 bps to 1.453%
- Gold flat at $1,770
- WTI down 0.1% to $70.95
- Bitcoin down 1.2% to $47,222