Morning Brew December 22 2022

Good Morning,

Equities rose yesterday with the Dow up 1.60%, the S&P 1.49% and the Nasdaq 1.54%. on rising consumer confidence and fantastic numbers from Nike boosted sentiment. Nike gained 12% and Fedex rose 5%.

Lower Home sales did not have such an impact even though the righer interest rates are really showing, sales fell to a 2.5 year low.

Trading in US Shares was less than 10 billion, more than 10% below the average, people are winding down for Christmas and expect less liquidity until January.

FX is fairly quiet, EURUSD is trading at 1.0645, GBPUSD at 1.2120 and USDJPY 131.90. Gold and Silver are at 1818, a really interesting chart is the weekly silver where we are attempting a break higher but need a weekly close above 24 to confirm it.

The USD Index fell to below 104 again to trade at 103.98 – 103.50 is a significant level to watch. US 10 year rates are at 3.67.

UK and US Data at 8:00 and 14: 30 could move markets, the Turkish rate decision at 12 has been very calm recently.

Trade carefully

Economic releases:

Thursday 22 December

• UK GDP (Q3 F)
• US Initial jobless claims (Dec 17) and 3Q GDP Final

Friday 23 December

• Japan CPI inflation
• US Durable goods orders, personal Income, Core PCE price index, and new home sales