Marcus Today Pre-Market Podcast – Wednesday 14th December

US markets gave up early gains but still finished higher following a better-than-expected inflation rate for November. The Dow Jones closed up 104 points (+0.30%), recovering from a mid-session stumble. At best it was up 707, and at worst it was down 114. The S&P 500 rose 0.73% and the NASDAQ was up 1.01%. In Europe, STOXX 50 +1.7%, FTSE +0.8%, CAC +1.4%, and DAX +1.3%. SPI Futures are up 16 points (+0.22%).

It was a volatile session in the US as November inflation came in at 7.1% YoY, ahead of the consensus figure of 7.3%, and the lowest reading since December last year. This was largely due to lower energy costs which increased 13.1% YoY, below the 17.6% in October. While gasoline, fuel oil, electricity, and food also decreased from the October reading. On the other hand, the cost of shelter increased to 7.1% from 6.9% in October.

The Fed is now largely expected to raise rates by 50bps tomorrow as it begins to slow the pace of rate hikes. Markets are now factoring in a 25bp rate hike as early as the February Fed meeting. Bond yields fell sharply during the session, the 10-year yield was down 9.9bps while the 2-year yield fell 17.2bps. The USD Index also came off 1.09%, with the Aussie Dollar gaining 1.62% to 68.54c.

• U.S. inflation subsiding as consumer prices rise moderately in boost to economy
• U.S. charges FTX founder with fraud, illegal campaign contributions
• Fed seen slowing rate hikes, likely ending them below 5%
• Wall Street rises after cooler CPI data but off highs as Fed eyed
• EU delays decision on natural gas price cap, countries still at odds
• China's massive older chip tech build up raises U.S. concern
• Apple prepares to allow alternative app stores on iPhones, iPads
• Positive Moderna, Merck cancer vaccine data advances mRNA promise, shares rise
• OPEC sees robust global oil demand growth in 2023 after 2022 Chinese contraction
• U.S. lab hits fusion milestone raising hopes for clean power
• U.S. Energy Department to spend $3.7 billion on carbon removal
• Oil rises to over $80/bbl as dollar slumps on slowing inflation

Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.

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