📊FOMC Minutes On the Go💸

The Fed is determined to raise interest rates further to fight inflation despite signs that prices are moderating in the economy. The FOMC members also know that loosening any financial condition in the market would derail their goal towards a 2% inflation target. 

There is a unanimous stance of no rate cut in 2023 despite investors hoping for some reprieve in rate hike to support the equity market. It dashed away any hopes of a pre-mature easing, and economic data has to show more evidence of sustained improvement in the downward trajectory of prices. 

In this view, Pika World remains cautious about long positions but accumulates for long-term ones. 

📮What are the dishes for the day?📖

It will be a critical day for the market. Pika World believes today’s data may help to finally provide the market with more direction after ranging for weeks. 

At 9.15 pm, we will have the ADP Nonfarm Employment change. Again, we expect 150K, up from 127K in the prior period. 

Initial Jobless Claims will arrive at 9.30 pm and should remain stable at 225K. 

Many related data, such as the S&P Global Composite PMI data for Dec and Service PMI data for Dec, will also arrive. They should point to sustained contraction, a reflection of an economy in a recession. 

We will have FOMC member Bostic speaking at 10.20 pm, and he could again provide consistent hawkish comments, and markets will keenly zoom into the details of various FOMC members’ speeches. 

It is 5 Jan, Thursday, at 8.50 am in Singapore and 7.50 pm in New York. While the US market is on a downward trajectory, the Chinese and Hong Kong markets are on a red bull sentiment, and Pika World is accumulating and, at times, trading the sector given a more robust showing. China could once again help become the world’s growth engine in a dull economic environment. 

Stay tuned for our next update!