What would be FED’s decision next week? US economy is doing better than expected and inflations are getting weaker now. Are they going to damage the system more to kill the inflations?
USA’s GDP number is not too bad, 3.5% in 2022 but in Q4, GDP growth was only 2.9% compare 3.2% in Q3. With better than expected USA’s macro numbers, US dollar raised and stock markets rallied today.
So, what would be the choice next week?
US Stocks were recovering big today with better macro numbers of US. GDP was doing good in 2022 amid of big rate hike by FED.
That means the basic fundamentals of USA is still strong enough to beat the rate hikes. So, is it going to be recession in USA? No one have any answer yet. But today only, markets were full of bright hope.
DJ Index was up 0.6%, S&P 500 Index was up 1.1% and NASDAQ index was up 1.8%.
Apple was up 1.5%, MS was up 3.1%, Amazon was up 2.1% and Tesla was up 10.9% today.
Everything changed? Nope… Chinese money is flowing into the global equity markets and it makes illusions.
We’ve to be very careful about this.
Most of Asian equity markets were rallied into the seven months high today and Hong Kong led the way.
We know where those money were coming.
US Dollar index was up finally, not much but recovered with better macro numbers of USA
Index was up 0.2% and ended at 101.80 today. Better than expected macro numbers of USA explained everything.
Is it going to be like this from now on? That depends on FOMC meeting result next week.
As US dollar went up, Gold prices were downed a bit, fell 0.7% and ended at $1,930/oz
