From the weakening of the dollar to the peace between Twitter and Apple

© Reuters.

| By Jeffrey Smith, |

The dollar weakened as global markets joined in the celebration of risk appetite that began with Fed Chairman Jerome Powell’s speech on Wednesday. However, US stock markets are recalling that Powell did not really innovate much.

China is easing its coronavirus regulations a bit further, helping tone risk appetite, but there are ominous economic data coming out of Europe. The US will release the PCE index, as well as the consumption and private expenditure report for October, and Elon Musk says he has reconciled with Apple, just as the US Congress works to impose peace on the railroad sector.

Here’s what you’ll need to know in the financial markets on Thursday, December 1.

1. The risk rally goes global as China eases its lockdown regulations

The global risk assets followed the stock markets in the US and recorded an increase during the night trading, when they were swept away by the euphoria that came from the words of the Chairman of the Fed, Jerome Powell, who repeated almost word for word the briefing he gave after the last policy meeting of the central bank.

In a speech he delivered at the Brookings Institution, Powell signaled that he would likely slow the pace of raising interest rates during the policy meeting that will take place this month. This message was given extra credence by the monthly collapse of the Chicago Fed, which raised the possibility that the US may be closer to a recession, and a decisive change in Fed direction, than is commonly thought.

The tone of the appetite for risks was helped during night trading by further announcements regarding the easing of controls on the Corona epidemic in China, which will now allow some of its citizens to isolate themselves at home, rather than in mass isolation centers, and as a result of a surprising recovery in the Purchasing Managers’ Index in China.

2. A flood of reports from the USA: the expenditure and income report is expected to be published; the private consumption expenditure index (PCE) and job cut data at the Moked

The US labor market continues to provide reports, with data expected to be published later today, and a number will be published an hour later. The unemployment rate in the US indicated a slow softening of the labor market in recent weeks, although a report from the US Department of Labor showed that there are still more than 1.5 vacancies For all lack of work in October.

The data on the number of unemployment claims will be published alongside the private report for October, as well as the spending index for October, which is the Fed’s preferred inflation index, which is expected to indicate a moderate slowdown compared to September.

The president of the Dallas Fed, Laurie Logan, and the governor of the Fed, , will speak shortly after the release of the reports.

The reports coming out of Europe during night trading were less encouraging, but did not stop Melaal from rising again against the dollar. It fell again in October, while falling the most in over two years in November.

3. Righteous marketers take a breather; Musk agrees with Apple

US stock markets are expected to wake up with a bit of a hangover later in the day, after celebrating fairly following Powell’s words.

As of midday Tuesday, futures were down 99 points, or 0.3%, while futures were down 0.2%, and futures were down 0.4%.

These are small corrections compared to the increases of between 2.2-4.1%, which were recorded in the main stock indices on Wednesday. The increase in the Dow Jones index is particularly noteworthy, after it took the index out of the bear market.

Stocks expected to be in focus later today include cloud computing giant Salesforce (NYSE: ), which announced late Wednesday that its co-CEO Brett Taylor will step down, leaving Marc Benioff as sole CEO. Salesforce shares lost more than 6% in early trading.

Shares of cloud data giant Snowflake (NYSE: ) also fell, after publishing a disappointing report last night.

Also in focus will be the stock of the technology giant, Apple (NASDAQ:), after the CEO and founder of Tesla (NASDAQ:), Elon Musk, said that Twitter has settled its differences with the iPhone manufacturer, adding that there is no risk that Twitter will be removed from Apple’s app store.

4. The US Congress works to force peace in the railroad dispute

The US House of Representatives has passed a bill that would end the long-running dispute between railroad operators and their unions, using a 1926 law that allows Congress to intervene in such disputes if they threaten to disrupt the economy.

The House of Representatives also attached a proposal to approve seven days of paid sick leave for railroad workers.

The unions are now prevented from striking due to a ‘cooling off’ period that will be in effect until December 9. The government warned that a nationwide rail strike would severely disrupt supply chains for the automotive and food sectors, as well as the waste management sector.

Following the news, shares of railroad giant Union Pacific (NYSE: ) hit a two-month high in late trading.

5. The price of oil rose to a one-month high following hopes from China

The price of crude oil rose, as hopes for a sustained reopening of the Chinese economy strengthened, in response to recent announcements by the country’s authorities.

The vice president of China, Sun Chunlan, who is responsible for coordinating the measures to protect public health against the corona epidemic, said that the fight has entered “a new phase”, and acknowledged the fact that the dominant Omicron strain is “less pathogenic” than its predecessors.

As of Thursday morning, U.S. crude futures were down from a new one-week high at $81.51 a barrel, while crude oil was up 1.0% at $87.81 a barrel.


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