Noor Trends News, Technical Analysis, Educational Tools and Recommendations
US shares remarkably surged Wednesday, on what proved to be an all-around great trading session for the stock market, with the S&P 500 Index SPX rising 0.31% to 4,701.21 and the Dow Jones Industrial Average DJIA rising 0.10% to 35,754.75.
Stocks surged led by overall positivity across the financial markets partially due to the retreat of concerns over the impact of the Omicron variant, though Europe is taking measures to combat rising coronavirus infection cases.
UK Prime Minister announced what he called “plan B” to contain the latest coronavirus outbreak. Boris Johnson noted that the number of new cases are doubling every 2-3 days.
Economic Data
Job quitters declined by 4.7%, falling to 4.16 million from 4.36 million, according to the Labour Department.
Job openings accelerated to just below their all-time high, totaling 11.03 million, an increase of 4.1% as the rate rose to 6.9% from 6.7%.
Job quitters declined by 4.7%, falling to 4.16 million from 4.36 million, the department said in its Job Openings and Labor Turnover Survey. The rate as a share of the workforce fell from 3% to 2.8%.
The JOLTS report is closely watched at the Federal Reserve and elsewhere for signs of labor market tightness.
Other Developments
The dollar reaped some strength during London trading hours but finished the day down against most major currencies. The US dollar fell despite European and American indexes closed mostly in the red territory, and while government bond yields extended gains to fresh weekly highs.
Some profit-taking and the opinion that the Fed may speed up tapering may have been behind the market’s performance during the North America session.
Canada’s central bank raises concerns about the potential impacts of recent flooding and the Omicron variant.
The Bank of Canada kept its benchmark overnight interest rate on hold and its forward guidance unchanged, even as it warned that the Omicron variant of Covid-19 had introduced more uncertainty into the country’s economic recovery.
The Narodowy Bank Polski (NBP), Poland’s central bank, raised its benchmark interest rate by 50bps as expected to 1.75% on Wednesday. The central bank also raised each of its other interest rates by 50bps; the discount rate on bills of exchange was lifted to 1.85% from 1.35%, the Lombard rate was lifted to 2.25% from 1.75%, while the deposit rate was lifted from 0.75% to 1.25%.
Russia’s inflation, in November, is climbing to 8.4%, touching its highest reading in about six years according to the Rosstat national statistics service’s statements on Wednesday. Prices have risen over the last 18 months as the economy emerges from the coronavirus slowdown, and Russia’s Central Bank has hiked interest rates aggressively to kill-off what governor Elvira Nabiullina fears could turn into a vicious inflationary cycle, so another rate hike is expected soon.
Pfizer said that a booster jab of its coronavirus vaccine is effective against the Omicron variant. Early studies suggest that those that got COVID plus two shots or those getting the third those are highly protected against the Omicron strain.
Turkish President Recep Erdogan said on Wednesday that volatility in markets will stop eventually. Erdogan said that the price hikes stemming from rising energy costs would soon stabilize and asked Turks to be patient and trust the government over the new economic model.
The lira weakened as far as 13.7350 against the dollar from a close of 13.45 a day earlier. It has lost 46% of its value to the U.S. currency this year, touching an all-time low of 14.0 last week.
Also Read
