The current indicators for U.S. stock futures suggest a tentative opening on Thursday, likely reflecting a lack of clear direction following the significant gains of the previous day. Investors are likely pausing to absorb Wednesday's surge, which marked the largest daily percentage increases for the major indices in over two months, driven by positive consumer price inflation data.
Despite this, there might be some upward momentum fueled by the Labor Department's recent data showing a greater-than-anticipated rebound in initial jobless claims for the week ending January 11th. Initial claims increased to 217,000, up 14,000 from the prior week's revised figure of 203,000, surpassing economists' expectations of 210,000. This rise follows claims dropping to their lowest since February 17, 2024, when they were at 200,000.
The jobless claims data could feed optimism regarding future interest rate trends, especially after yesterday’s report highlighted an unexpected deceleration in the annual core consumer price increase. Additionally, the Commerce Department's report indicated that December's retail sales in the U.S. were lower than anticipated. Retail sales rose by 0.4% in December, following a revised 0.8% growth in November, under the 0.6% economists projected.
A decline in UnitedHealth (UNH) shares may exert pressure on the Dow, as the health insurance giant's pre-market shares dropped 4.3% due to weaker-than-expected fourth quarter revenues.
Wednesday saw stocks rally intensely early on and continue on an upward trajectory throughout the day, as major indices made notable gains following a mixed end on Tuesday. The tech-heavy Nasdaq claimed a remarkable gain, soaring 466.84 points or 2.5% to 19,511.23, rebounding from its lowest close in nearly two months. The Dow leapt 703.27 points or 1.7% to 43,221.55, while the S&P 500 climbed 107.00 points or 1.8% to 5,949.91.
Wall Street's rally was largely fueled by a positive reaction to the Labor Department's significant report on December's consumer price inflation. While the report indicated a slightly higher-than-expected rise in consumer prices in December, it also revealed an unexpected slowdown in the annual rate of core consumer price growth. The consumer price index increased by 0.4% in December, having risen by 0.3% in November, slightly above the economist prediction of 0.3%.
Moreover, the annual increase in consumer prices accelerated to 2.9% in December from 2.7% in November, aligning with economist forecasts. Core consumer prices, excluding food and energy, edged up by 0.2% in December, mirroring expectations after a consistent 0.3% rise for four consecutive months. Yearly core consumer price growth eased to 3.2% in December from 3.3% in November, contrary to predictions of unchanged growth.
"Core Inflation isn't accelerating and that's the story," commented Jamie Cox, Managing Partner at Harris Financial Group. "The market's fears of runaway inflation are unfounded according to the data."
Positive sentiment was also bolstered by strong earnings reports from financial titans JPMorgan Chase (JPM), Goldman Sachs (GS), and Citigroup (C). Financial stocks surged in response, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index jumping by 4.1% and 3.1%, respectively.
There was also notable strength in interest-rate sensitive housing stocks, pushing the Philadelphia Housing Sector Index up by 2.3%. Computer hardware, semiconductor, and software stocks contributed significantly to the Nasdaq's climb, while retail, steel, and energy stocks also saw considerable gains, moving upwards alongside most major sectors.
**Commodity and Currency Markets**
Crude oil futures dipped by $0.44 to $79.60 a barrel, following a $2.54 jump to $80.04 on Wednesday. Gold futures, after climbing $35.50 to $2,717.80 an ounce in the previous session, were up another $21.40 to $2,739.20 an ounce.
In currency markets, the U.S. dollar valued at 156.03 yen, slightly down from 156.47 yen at Wednesday's New York trading close. Against the euro, the dollar was valued at $1.0278 compared to $1.0289 the previous day.
**Asia**Asian stock markets gained momentum on Thursday, driven by softer U.S. inflation figures that have fueled hopes for additional interest rate cuts by the Federal Reserve within the year. Concurrently, the U.S. dollar weakened, while the Japanese yen climbed to a one-month peak in light of prospective interest rate hikes by Japan.
Gold prices remained stable, just below $2,700 per ounce, following remarks from several Federal Reserve officials expressing confidence in achieving a 2 percent annual inflation rate. Meanwhile, oil prices sustained their upward trajectory, building on the previous session's multi-month highs. This rise was bolstered by a greater-than-anticipated reduction in U.S. crude inventories and concerns regarding the impact of new U.S. sanctions targeting Iranian and Russian crude exports.
In China, the Shanghai Composite Index increased by 0.3 percent to 3,236.03, ahead of the awaited GDP figures for the final quarter and other significant economic data due on Friday. Hong Kong’s Hang Seng Index climbed 1.2 percent to 19,522.89, propelled by strong performances in the real estate and technology sectors.
Japanese equities managed modest gains despite the yen's appreciation amid speculation of a possible Bank of Japan rate hike next week. The Nikkei 225 Index rose by 0.3 percent to 38,572.60, while the broader Topix Index dipped slightly to 2,688.31. Notably, technology stocks rallied, even as the U.S. announced additional export restrictions on advanced computing semiconductors. Advantest increased by 1.2 percent, SoftBank Group advanced 2.2 percent, and Tokyo Electron surged by 3.9 percent.
Japan’s annual wholesale inflation remained at 3.8 percent in December, sustained by persistently high food costs, based on today’s data release. This comes a day after Bank of Japan Governor Kazuo Ueda confirmed plans to discuss a potential rate hike at the meeting on January 23-24.
South Korean stocks concluded significantly higher as the Bank of Korea unexpectedly maintained its policy rate at 3 percent, following two consecutive rate cuts in the final quarter of the previous year. The Kospi surged 1.2 percent to 2,527.49, led chiefly by large-cap technology stocks.
In Australia, markets climbed as employment data revealed a slight increase in the unemployment rate in December, heightening expectations of an interest rate cut in February. The S&P/ASX 200 Index rose 1.4 percent to 8,327, with strong performances from banks and technology stocks. The broader All Ordinaries Index settled 1.3 percent higher at 8,569.10, with top lender Commonwealth Bank of Australia rebounding nearly 3 percent after enduring five consecutive sessions of losses.
Across the Tasman, New Zealand’s S&P/NZX 50 Index gained 0.4 percent to hit 13,000.67, marking its highest level since January 9.
In Europe, markets edged higher on Thursday, with benign U.S. inflation figures leaving room for potential Federal Reserve interest rate cuts this year. However, regional gains were tempered by weaker-than-expected U.K. GDP data unveiled this morning. The U.K. economy saw a slight expansion in November following two consecutive monthly contractions, with Gross Domestic Product increasing by 0.1 percent.
In Germany, consumer price inflation accelerated to the highest level in nearly a year in December, as indicated by final data from Destatis. The consumer price index rose by 2.6 percent, up from November’s 2.2 percent, and matching the preliminary estimate released earlier.
In European market activity, the French CAC 40 Index surged 2.0 percent, the U.K.'s FTSE 100 Index increased by 0.6 percent, and the German DAX Index lifted by 0.4 percent. Richemont shares escalated sharply after posting stronger-than-expected third-quarter sales, and Renault enjoyed gains from a 1.3 percent rise in sales volume in 2024, fueled by growing electric vehicle adoption. Stellantis and Antofagasta also experienced gains, despite each reporting a decrease in fourth quarter shipments and flat 2024 copper output, respectively.
In the United States, a Labor Department report revealed that initial claims for unemployment benefits rebounded more than anticipated for the week ending January 11. Initial claims increased to 217,000, surging by 14,000 from the previous week's revised count of 203,000, slightly surpassing economists’ predictions of a rise to 210,000.The Commerce Department unveiled data on Thursday, indicating that U.S. retail sales for December rose at a slower pace than anticipated. According to the report, December saw a retail sales increase of 0.4%, following a more robust upwardly revised rise of 0.8% in November. Analysts had predicted a 0.6% increase, in contrast to the prior month's reported 0.7% rise.
Excluding sales from motor vehicles and parts dealers, retail sales still experienced a 0.4% increase in December, consistent with economist predictions, after a modest 0.2% uptick in November.
Adding to the day's economic data, the Labor Department released statistics showing that December import prices in the U.S. edged up in alignment with forecasts. Import prices rose by 0.1% in December, mirroring the marginal gains observed in November and October.
Simultaneously, export prices grew by 0.3% in December, surpassing November's stagnant figures and exceeding the anticipated 0.2% rise.
Furthermore, the Federal Reserve Bank of Philadelphia reported a significant revival in regional manufacturing activity for January. As revealed by the Philly Fed, the diffusion index for current general activity soared to a positive 44.3 in January from December's negative 10.9, indicating growth. Economists had projected a rise to a negative 5.0.
Looking ahead, the Philly Fed highlighted that the diffusion index for future general activity increased to 46.3 in January from 33.8 in December, reflecting widespread optimism for growth in the coming six months.
At 10 a.m. ET, the National Association of Homebuilders is set to publish its report evaluating homebuilder confidence for January. Speculations suggest a slight dip in the housing market index to 45, following its December stability at 46.
The Commerce Department will also issue its November business inventories report at the same time, with projections indicating a nominal 0.1% increase.
Lastly, at 11 a.m., the Treasury Department will reveal this month's specifics regarding the auction of twenty-year bonds.
The material has been provided by InstaForex Company - www.instaforex.com
Despite this, there might be some upward momentum fueled by the Labor Department's recent data showing a greater-than-anticipated rebound in initial jobless claims for the week ending January 11th. Initial claims increased to 217,000, up 14,000 from the prior week's revised figure of 203,000, surpassing economists' expectations of 210,000. This rise follows claims dropping to their lowest since February 17, 2024, when they were at 200,000.
The jobless claims data could feed optimism regarding future interest rate trends, especially after yesterday’s report highlighted an unexpected deceleration in the annual core consumer price increase. Additionally, the Commerce Department's report indicated that December's retail sales in the U.S. were lower than anticipated. Retail sales rose by 0.4% in December, following a revised 0.8% growth in November, under the 0.6% economists projected.
A decline in UnitedHealth (UNH) shares may exert pressure on the Dow, as the health insurance giant's pre-market shares dropped 4.3% due to weaker-than-expected fourth quarter revenues.
Wednesday saw stocks rally intensely early on and continue on an upward trajectory throughout the day, as major indices made notable gains following a mixed end on Tuesday. The tech-heavy Nasdaq claimed a remarkable gain, soaring 466.84 points or 2.5% to 19,511.23, rebounding from its lowest close in nearly two months. The Dow leapt 703.27 points or 1.7% to 43,221.55, while the S&P 500 climbed 107.00 points or 1.8% to 5,949.91.
Wall Street's rally was largely fueled by a positive reaction to the Labor Department's significant report on December's consumer price inflation. While the report indicated a slightly higher-than-expected rise in consumer prices in December, it also revealed an unexpected slowdown in the annual rate of core consumer price growth. The consumer price index increased by 0.4% in December, having risen by 0.3% in November, slightly above the economist prediction of 0.3%.
Moreover, the annual increase in consumer prices accelerated to 2.9% in December from 2.7% in November, aligning with economist forecasts. Core consumer prices, excluding food and energy, edged up by 0.2% in December, mirroring expectations after a consistent 0.3% rise for four consecutive months. Yearly core consumer price growth eased to 3.2% in December from 3.3% in November, contrary to predictions of unchanged growth.
"Core Inflation isn't accelerating and that's the story," commented Jamie Cox, Managing Partner at Harris Financial Group. "The market's fears of runaway inflation are unfounded according to the data."
Positive sentiment was also bolstered by strong earnings reports from financial titans JPMorgan Chase (JPM), Goldman Sachs (GS), and Citigroup (C). Financial stocks surged in response, with the KBW Bank Index and the NYSE Arca Broker/Dealer Index jumping by 4.1% and 3.1%, respectively.
There was also notable strength in interest-rate sensitive housing stocks, pushing the Philadelphia Housing Sector Index up by 2.3%. Computer hardware, semiconductor, and software stocks contributed significantly to the Nasdaq's climb, while retail, steel, and energy stocks also saw considerable gains, moving upwards alongside most major sectors.
**Commodity and Currency Markets**
Crude oil futures dipped by $0.44 to $79.60 a barrel, following a $2.54 jump to $80.04 on Wednesday. Gold futures, after climbing $35.50 to $2,717.80 an ounce in the previous session, were up another $21.40 to $2,739.20 an ounce.
In currency markets, the U.S. dollar valued at 156.03 yen, slightly down from 156.47 yen at Wednesday's New York trading close. Against the euro, the dollar was valued at $1.0278 compared to $1.0289 the previous day.
**Asia**Asian stock markets gained momentum on Thursday, driven by softer U.S. inflation figures that have fueled hopes for additional interest rate cuts by the Federal Reserve within the year. Concurrently, the U.S. dollar weakened, while the Japanese yen climbed to a one-month peak in light of prospective interest rate hikes by Japan.
Gold prices remained stable, just below $2,700 per ounce, following remarks from several Federal Reserve officials expressing confidence in achieving a 2 percent annual inflation rate. Meanwhile, oil prices sustained their upward trajectory, building on the previous session's multi-month highs. This rise was bolstered by a greater-than-anticipated reduction in U.S. crude inventories and concerns regarding the impact of new U.S. sanctions targeting Iranian and Russian crude exports.
In China, the Shanghai Composite Index increased by 0.3 percent to 3,236.03, ahead of the awaited GDP figures for the final quarter and other significant economic data due on Friday. Hong Kong’s Hang Seng Index climbed 1.2 percent to 19,522.89, propelled by strong performances in the real estate and technology sectors.
Japanese equities managed modest gains despite the yen's appreciation amid speculation of a possible Bank of Japan rate hike next week. The Nikkei 225 Index rose by 0.3 percent to 38,572.60, while the broader Topix Index dipped slightly to 2,688.31. Notably, technology stocks rallied, even as the U.S. announced additional export restrictions on advanced computing semiconductors. Advantest increased by 1.2 percent, SoftBank Group advanced 2.2 percent, and Tokyo Electron surged by 3.9 percent.
Japan’s annual wholesale inflation remained at 3.8 percent in December, sustained by persistently high food costs, based on today’s data release. This comes a day after Bank of Japan Governor Kazuo Ueda confirmed plans to discuss a potential rate hike at the meeting on January 23-24.
South Korean stocks concluded significantly higher as the Bank of Korea unexpectedly maintained its policy rate at 3 percent, following two consecutive rate cuts in the final quarter of the previous year. The Kospi surged 1.2 percent to 2,527.49, led chiefly by large-cap technology stocks.
In Australia, markets climbed as employment data revealed a slight increase in the unemployment rate in December, heightening expectations of an interest rate cut in February. The S&P/ASX 200 Index rose 1.4 percent to 8,327, with strong performances from banks and technology stocks. The broader All Ordinaries Index settled 1.3 percent higher at 8,569.10, with top lender Commonwealth Bank of Australia rebounding nearly 3 percent after enduring five consecutive sessions of losses.
Across the Tasman, New Zealand’s S&P/NZX 50 Index gained 0.4 percent to hit 13,000.67, marking its highest level since January 9.
In Europe, markets edged higher on Thursday, with benign U.S. inflation figures leaving room for potential Federal Reserve interest rate cuts this year. However, regional gains were tempered by weaker-than-expected U.K. GDP data unveiled this morning. The U.K. economy saw a slight expansion in November following two consecutive monthly contractions, with Gross Domestic Product increasing by 0.1 percent.
In Germany, consumer price inflation accelerated to the highest level in nearly a year in December, as indicated by final data from Destatis. The consumer price index rose by 2.6 percent, up from November’s 2.2 percent, and matching the preliminary estimate released earlier.
In European market activity, the French CAC 40 Index surged 2.0 percent, the U.K.'s FTSE 100 Index increased by 0.6 percent, and the German DAX Index lifted by 0.4 percent. Richemont shares escalated sharply after posting stronger-than-expected third-quarter sales, and Renault enjoyed gains from a 1.3 percent rise in sales volume in 2024, fueled by growing electric vehicle adoption. Stellantis and Antofagasta also experienced gains, despite each reporting a decrease in fourth quarter shipments and flat 2024 copper output, respectively.
In the United States, a Labor Department report revealed that initial claims for unemployment benefits rebounded more than anticipated for the week ending January 11. Initial claims increased to 217,000, surging by 14,000 from the previous week's revised count of 203,000, slightly surpassing economists’ predictions of a rise to 210,000.The Commerce Department unveiled data on Thursday, indicating that U.S. retail sales for December rose at a slower pace than anticipated. According to the report, December saw a retail sales increase of 0.4%, following a more robust upwardly revised rise of 0.8% in November. Analysts had predicted a 0.6% increase, in contrast to the prior month's reported 0.7% rise.
Excluding sales from motor vehicles and parts dealers, retail sales still experienced a 0.4% increase in December, consistent with economist predictions, after a modest 0.2% uptick in November.
Adding to the day's economic data, the Labor Department released statistics showing that December import prices in the U.S. edged up in alignment with forecasts. Import prices rose by 0.1% in December, mirroring the marginal gains observed in November and October.
Simultaneously, export prices grew by 0.3% in December, surpassing November's stagnant figures and exceeding the anticipated 0.2% rise.
Furthermore, the Federal Reserve Bank of Philadelphia reported a significant revival in regional manufacturing activity for January. As revealed by the Philly Fed, the diffusion index for current general activity soared to a positive 44.3 in January from December's negative 10.9, indicating growth. Economists had projected a rise to a negative 5.0.
Looking ahead, the Philly Fed highlighted that the diffusion index for future general activity increased to 46.3 in January from 33.8 in December, reflecting widespread optimism for growth in the coming six months.
At 10 a.m. ET, the National Association of Homebuilders is set to publish its report evaluating homebuilder confidence for January. Speculations suggest a slight dip in the housing market index to 45, following its December stability at 46.
The Commerce Department will also issue its November business inventories report at the same time, with projections indicating a nominal 0.1% increase.
Lastly, at 11 a.m., the Treasury Department will reveal this month's specifics regarding the auction of twenty-year bonds.
The material has been provided by InstaForex Company - www.instaforex.com
