U.S. retail sales fell faster than expected. The three major U.S. stock indexes opened lower on Wednesday.
On Wednesday, U.S. time, the three major U.S. stock indexes rose and fell, of which the Dow closed down 0.15%, the S&P 500 index and the nerd index closed up 0.18% and 0.5% respectively, and the nerd index closed at a new high. The latest data shows that due to the impact of the second wave of the coronavirus epidemic and the decline in household income, retail sales in the United States fell 1.1% month-on-month in November, exceeding the decline of 0.3% of the market expectations. Following the news, the three major U.S. stock indices opened lower and then fluctuated.
The Federal Reserve reiterates its easing position, which has become a reassurance for the market.
During the afternoon trading session, the last monetary policy meeting of the Federal Reserve this year came to an end. The Federal Reserve announced that it would keep the federal funds rate unchanged at 0% to 0.25% and maintain the current portfolio and purchase intensity of asset purchases until the economy returns to full employment. In addition, the Federal Reserve believes that the U.S. economy and employment continue to recover, and raises economic expectations, raising the U.S. gross domestic product from the previously predicted contraction of 3.7% to 2.4%. In his subsequent speech, Federal Reserve Chairman Powell mentioned that the Federal Reserve promised to achieve the two policy goals of full employment and price stabilization, but the coronavirus epidemic has had a significant impact on inflation and will not raise interest rates in advance until inflation is back on track. The Federal Reserve will issue a warning before reducing the size of bond purchases.
In addition, Powell also mentioned that the possibility of fiscal stimulus by the U.S. government is very, very high now. Considering the recent weakness of economic data in the United States, this statement undoubtedly reassured capital markets. Following Powell’s speech, the yield of the dollar index and U.S. debt fell one after another, while gold and U.S. stocks rose in the short term, and the Dow once turned from falling to rising.
Economic data improved significantly. European stock markets closed up across the board.
Europe’s three major stock markets closed up on Wednesday, with London and Paris trading up 0.88% and 0.31% respectively, while Frankfurt stock markets closed up 1.52%. In terms of data, the initial value of the eurozone’s comprehensive procurement managers index jumped from 45.3 to 49.8 in December, indicating that the performance of business activities in the euro area has improved significantly, with increased exports and German economic growth as the main reasons. However, economists warned that with Germany taking stricter epidemic prevention measures on Wednesday, the direction of Germany’s economy may not be so optimistic.
Good news spread in the British and European negotiations. The pound hit a two-and-a-half-year high against the dollar.
In addition, there was also good news in the trade negotiations between the United Kingdom and the European Union. European Commission President von der Leyen said on Wednesday that the two sides had made progress on the issue of fair competition among enterprises. As a boosted by this, the pound broke through 1.35 against the dollar on Wednesday, a two-and-a-half-year high.
Last week, U.S. crude oil inventories unexpectedly fell, boosting international oil prices.
Crude oil prices rose on Wednesday, and U.S. WTI light crude oil futures closed at $47.82 a barrel. Brent crude oil futures closed at $51.08 per barrel. Last week, U.S. crude oil inventories unexpectedly fell by about 3.1 million barrels, boosting oil prices.
Progress in negotiations on the U.S. fiscal rescue plan boosts international gold prices
Gold prices rose slightly on Wednesday, with gold futures for delivery in February 2021 at $1,859.10 per ounce. U.S. lawmakers said on Wednesday that substantial progress had been made in finalizing the fiscal rescue plan, compounded by the weakening of the dollar index and boosting gold prices.
