Smaller Fed rate hikes anticipated, stock market rallies

Published Mon 24 Oct 2022 06:42 by Market Analyst

Last Week’s Risers & Fallers:

Dow Jones (US30) – The Dow Jones rallied 750 points on Friday, ending the week at 31,082.56. The talk around Wall Street is that the Fed might raise interest rates at a lower rate in November.

Netflix Inc. (NASDAQ: NFLX) – Netflix Inc. rose by 7.98% to close $289.57 per share. Netflix gains led the Nasdaq Index on Friday after positive quarterly results.

Gold – The gold price rose on Friday by 1.57% to $1662.50. Gold was elevated by the intervention of Japanese authorities to boost the Yen thereby pushing the US dollar lower.

EURUSD – The euro gained 0.77% against the US dollar on Friday. The pair is trading at 0.9862.

Significant events to watch:

USA (USD): US Crude Oil inventories – The Energy Information Administration’s (EIA) Crude Oil Inventories measures the weekly change in the number of barrels of commercial crude oil held by US firms. The level of inventories influences the price of petroleum products, which can have an impact on inflation. Crude oil inventory for last week was -1.725M, better than the forecast of 1.380M barrels.

The report is due Wednesday, 26 October, at 14:30 GMT.

EUROPE (EURO): Eurozone Interest rate decision – The six members of the European Central Bank (ECB) Executive Board and the 16 governors of the euro area central banks vote on where to set the rate. Traders watch interest rate changes closely as short-term interest rates are the primary factor in currency valuation. The European interest rate is currently at 1.25%.

The report is due Thursday, 27 October, at 12:15 GMT.

Canada (CAD): Canadian Gross Domestic Product (GDP) –Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health. Canada releases fresh GDP data on a monthly basis. The latest GDP is 0.1%, better than the forecast of -0.1%.

The report is due Friday, 28 October, at 12:30 GMT.

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