🎢Stocks lose steam towards the end of trading🎯

The equity market was broadly higher during the early trading hours, only to fade as it lost momentum given a busy week of important speeches and data. Investors aren’t going all out on risk-on mode as we begin the fourth-quarter earning season. 

The rise in equity is built on the idea that we could get a soft landing. The latest recent job and economic data reflect a slowing economy that isn’t as bad as some had expected, prompting the idea that perhaps we could get a softer economy instead of a deep recession. 

Analysts expect goods inflation to moderate this year as consumers shift their expenditure towards services. As inflation remains sticky, investors should not expect the Fed to change its gear or pivot as part of its broader policy communication. 

🎲Banks to report earnings on Friday🧮

As we set sight into the week, the key US financial giants such as JP Morgan, Citigroup and Bank of America will take the lead to report their earnings in the last week. It will be the first test of investors’ tolerance of the economic projection and outlook by these banks’ leaders. 

💎Oil prices move higher on China Reopen optimism🥃

With China’s reopening in progress, investors expect higher economic demand as China, the world’s largest crude importer, is expected to restart its economy and factory. There is also a robust demand for domestic travel during the festive season, which is expected to rise sharply in the next 2 weeks. 

📊What are the dishes for the day?📖

At 10 pm, Uncle Powell will be speaking. He is likely to remain hawkish and state the need for more evidence of the inflation moderating before considering the pause of any rate hike. Investors are also keen to hear any possible clues about the February rate hike amount. 

It is 10 Jan, Tuesday, at 9 am in Singapore and 8 pm in New York. It has been a roller coaster week, and we hope for more clarity on the equity market movement ahead.