🎯A bounce towards an important day🎲

The equity market recovers some of the losses from the past weeks as vital economic data looms. This week is poised to be a critical, pivotal point in the direction of the market in the immediate term. 

It was a day of swings, as Pika World tried to reduce exposure on both sides, taking some losses along the way with minor gains as we prepared for a possible massive swing. CPI data will be out today, and it is still crucial as a market reader, although the Fed is likely to increase the rate by 0.5% in the upcoming FOMC meeting

🎢CPI: What to expect?💰

We are expecting the CPI to jump by 7.3% in November. This will be a more minor increase than October’s 7.7% rise. If the trend of decline persists, as seen from the peak of 9% in early the year, the Fed will have reason to introduce milder rate hikes when it announces its rate decision on Wednesday. 

📊FOMC Meeting: Where is the terminal rate?💰

The risk is on how high the terminal rate will be than what is currently expected. If the hawkish tone remains, it will likely jolt the market once more and set the tone for the rest of the 2022 market movement.

📱Oracle: A light beaming 🔦

 Shares of the software giant were up on Monday as investors cheered on the continuous progress of its business shifting to a cloud base. In the words of the CEO Safra Catz, it was indeed an “outstanding quarter”. 

Growth is projected at 15% to 17%, which is a good sign. A healthy trend can be found in its infrastructure cloud business, which has grown by 53%. There is some tailwind on a currency-adjusted basis, as the figure would be 59%. 

Likewise, as seen last week, Oracle’s cloud is also one of the winners among the four companies that had won the Pentagon cloud computing projects with Amazon, Microsoft and Alphabet. 

Pika World continued to favour Oracle’s successful shift in business direction with higher growth in its new generation of cloud infrastructure. 

📮What’s on the menu today?📖

At 9.30 pm, we will have the CPI data for Nov on a year-to-year basis. As discussed, we expect a moderation of 7.3% from 7.7%. 

It is 12 December, Tuesday, at 9 am in Singapore and 8 pm in New York. It is an event-packed week, and we hope all Pika World friends have a safe trading day!