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For the second day in a row, positive sentiment has dominated financial markets worldwide on the back of some important US economic data and positive news about Covid-19.
It is expected that the volume of transactions in the financial markets will witness a noticeable decline in liquidity rates, starting from Friday, due to exit and arrangements concerning the annual celebration of Christmas.
Economic Data
The monthly reading of the personal consumption expenditures index retreated in November by 0.6%, compared to the previous reading of 0.7%. The actual reading was in line with expectations that indicated the same number.
Despite the increase in the annual reading for the same indicator by 5.7% compared to the previous reading of 5.1%, higher than expectations that indicated 5.6%, investors in the financial markets the monthly reading can signal stability of inflation levels soon.
The weekly jobless claims reading data was in line with market expectations, with an increase of 205 thousand claims.
Personal income increased $90.4 billion (0.4%) in November, according to estimates released by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $70.4 billion (0.4%), and personal consumption expenditures (PCE) increased $104.7 billion (0.6%).
Real DPI decreased 0.2% in November, and Real PCE increased less than 0.1%; spending on services increased 0.5% and spending on goods decreased 0.8%. The PCE price index increased 0.6%. Excluding food and energy, the PCE price index increased 0.5%.
Other Developments
Merck’s anti-Covid 19 pills have been officially approved making it possible to receive medication at home rather than hospitalization. The financial markets welcomed the news heartedly.
In the past few days, preliminary indications have emerged that the mutated Omicron variant can be contained, despite the lack of compelling scientific evidence for this.
