Macro Scenes:
- Wall Street hit year-highs: The US stock markets extended gains following the November CPI data, which was in line with expectations. The headline inflation slightly fell to 3.1%, while core CPI stayed at 4% year on year. Three major averages posted a four-day winning streak, reaching the respective new year-highs. The fear gauge, the CBOE VIX, fell 4% to just above 12.
- Oil and gas tumbled: Crude prices tumbled more than 3% as oversupply concerns continued to pressure the demand outlook. The US Energy Information Administration (EIA) reduced its 2024 forecast for oil prices by more than 11%.
- Fed’s decision looms: The Fed is set to decide on the interest rate tomorrow. While markets widely expect another rate hike pause and a possible rate cut in May 2024, the Fed may not satisfy investors with a dovish tone. It will most likely keep its stance for higher for longer rates.
- Chinese stock markets stabilized: The Chinese stock markets eased losses following the Communist Party’s annual economic work conference. The Chinese government laid out a 9-point plan, including focusing on technology innovation and boosting domestic demands.
- Asian markets to open higher: The ASX 200 futures rose 0.05%, the Hang Seng Index futures climbed 0.07%, and Nikkei 225 futures were up 0.30%.
Chart of the Day:
ASX 200 (Cash), daily – The ASX 200 has formed a potential head-and-shoulder bottom reversal pattern since October. It has bullishly broken up the neckline level of 7,130, heading to further potential resistance of 7,300 at the 23.6% retracement of Fibonacci. Its near-term support can also be the neckline level of about 7,130.
Source: CMC Markets as of 13 December 2023
Company News:
- Netflix (NDX: NFLX) released the global half-year viewer data for the first time. The data tells how many views each of its films receive. “Night Agent was the most-watched show globally in 1H 2023, followed by Season 2 of Ginny & Georgia.
- Oracle (NYSE: ORCL) plunged 12% due to the disappointing growth of its cloud division, Oracle Cloud Infrastructure. The software company missed revenue expectations while slightly beating the earnings per share estimate.
Today’s Agenda:
- Japan’s Q4 Tankan Manufacturing and Non-Manufacturing Index
- US PPI for November
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.