U.S. retail sales fell more than expected, three major U.S. stock indexes opened lower on Wednesday
On Wednesday, U.S. time, the three major U.S. stock indexes were mixed. The Dow closed down 0.15%, the S&P 500 and the Nasdaq closed up 0.18% and 0.5%, respectively, and the Nasdaq hit a new closing high. The latest data shows that, affected by the second wave of the new crown epidemic and the decline in household income, US retail sales in November fell by 1.1% month-on-month, and the decline exceeded market expectations by 0.3%. Following the news, the three major US stock indexes opened lower. The trend subsequently fluctuated.
The Fed reiterated its easing stance and became the market “reassurance”
In the afternoon trading session, the last Fed monetary policy meeting this year came to an end. The Fed announced that it would maintain the federal funds rate at the level of 0% to 0.25% and maintain the current combination of asset purchases and purchases until the economy returns to full employment. . In addition, the Fed believes that the U.S. economy and employment will continue to recover, and it has raised its economic forecast, raising the U.S. GDP in 2020 from the previously predicted shrinking 3.7% to 2.4%. Fed Chairman Powell mentioned in his subsequent speech that the Fed promised to achieve the two policy goals of full employment and stable prices, but the new crown epidemic has already had a significant impact on inflation and will not raise interest rates before inflation returns to the right track. Before reducing the scale of bond purchases, the Fed will issue a warning.
In addition, Powell also mentioned that the possibility of the US government implementing fiscal stimulus is very, very high. Taking into account the recent weakness in US economic data, this remark will undoubtedly give the capital market a reassurance. Following Powell’s speech, the dollar index and U.S. bond yields have fallen, while gold and U.S. stocks have risen in the short-term. The Dow once turned from falling to rising.
Significantly improved economic data, European stock markets closed up across the board
The three major European stock markets all closed up on Wednesday. London and Paris stock markets rose 0.88% and 0.31% respectively, while Frankfurt stock markets closed up 1.52%. On the data side, the initial value of the Eurozone Comprehensive Purchasing Managers Index jumped from 45.3 to 49.8 in December, which shows that the performance of business activities in the Eurozone has improved significantly. Increased exports and German economic growth are the main reasons. However, economists warned that as Germany adopted stricter epidemic prevention measures on Wednesday, the direction of the German economy may not be so optimistic.
Good news comes out of Anglo-European negotiations, pound to dollar hits two and a half years high
In addition, good news came out of the trade talks between the UK and the EU. European Commission President Von der Lein said on Wednesday that the two sides have made progress on the issue of fair competition among enterprises. Boosted by this, the pound against the U.S. dollar broke through 1.35 on Wednesday, setting a record. New high in the past two and a half years.
Last week U.S. crude oil inventories unexpectedly decreased, boosting international oil prices
Crude oil prices rose on Wednesday, and US WTI light crude oil futures closed at $47.82 per barrel. Brent crude oil futures closed at 51.08 US dollars a barrel. Last week, US crude oil inventories unexpectedly decreased by about 3.1 million barrels, and the news boosted oil prices.
U.S. financial rescue plan negotiations make progress, boosting international gold prices
The price of gold rose slightly on Wednesday, and gold futures for delivery in February 2021 were quoted at $1,859.10 per ounce. U.S. congressmen said on Wednesday that substantial progress has been made in finalizing the financial rescue plan. Overlapping the weakening of the US dollar index, gold prices have been boosted.