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Traders are eying key economic data on Friday. Consumer inflation forecast to accelerate to 6.8% annually from 6.2% while Core CPI expected to rise to 4.9% from 4.6%. Producer prices, The monthly increases are predicted to be 0.7% in the headline rate and 0.5% in the core.
Wages point to still higher inflation as the Federal Reserve has turned its attention to prices instead of jobs. American consumer prices, which have already jumped more in the last twelve months than at any time in the last 71 years, are set to take another leap upward.
Economic Data
The US Energy Information Administration reported on Thursday that domestic supplies of natural gas fell by 59 billion cubic feet for the week ended 3 December.
The Commerce Department said on Thursday that wholesale inventories accelerated 2.3%, instead of 2.2% as estimated last month. Stocks at wholesalers increased 1.4% in September.
US wholesale inventories increased a little bit more than expected in October, suggesting that the restocking of warehouses could again support economic growth during the current quarter.
Inventories are a key part of gross domestic product. Wholesale inventories, excluding autos, advanced 2.3% in October. This component goes into the calculation of GDP.
Weekly jobless claims tumbled last week, reaching a fresh 52-year low as the US jobs market climbs out of its pandemic-era hole, the Labor Department reported Thursday.
Initial filings for unemployment insurance totaled 184,000 for the week ended Dec. 4, the lowest going back to Sept. 6, 1969, which saw 182,000.
Continuing claims, which run a week behind the headline number, increased 38,000 to just shy of 2 million. However, the four-week moving average for continuing claims, which irons out weekly volatility, dropped to 2.03 million, a decline of 54,250.
New Zealand’s manufacturing sector witnessed a lower level of expansion in November, according to an economic survey released early Friday.
The BNZ-Business New Zealand Performance Manufacturing Index (PMI) for November dropped 3.6 points to 50.6, which was still in expansion, but at slower rate than was seen in the first half of the year.
A reading above 50 indicates an expansion in activity, while anything below that threshold indicates a contraction.
In addition, the proportion of negative comments from respondents rose to 57.6 percent in November, compared with 55.4 percent for October and 71 percent in September.
Other Developments
“US and its allies would respond to Russia’s aggression,” said the White House early Friday. The news came after chatters that Russia rejected Ukraine’s proposal to strengthen the July 2020 ceasefire. The news is expected to have an impact on the risk appetite and commodity prices but the market’s cautious mood ahead of the key US inflation data dimmed the first reactions.
The US Senate voted on Thursday to advance a bill to create a fast-track process allowing Democrats to raise the federal debt limit without votes from Republicans, a crucial next step as lawmakers race the clock to avert a catastrophic debt default.
The fast-track process could take place as soon as later in the day Thursday if an agreement is reached to speed up the process. If there isn’t an agreement, the final vote is expected Friday.
Bank of Canada Deputy Governor Toni Gravelle said on Thursday that concerns about upside inflation risks are heightened much more than usual.
“We are likely to react a little bit more readily to the upside risk given it’s already above our inflation-control range”, Gravelle added.
For reference, the bank’s inflation-control range is 1.0%-3.0%. The comments come in wake of remarks from Gravelle earlier in the session.
France’s Emmanuel Macron criticized the British government on Thursday, saying post-Brexit relationships with the UK are difficult because the UK does not do what it promises to do. “I hope Britain will re-commit to proper relations”, he said.
Also Read:
White House: US, Allies Will Respond To Russia’s Aggression
Inflation, Stimulus Two Key Questions ECB Seeks To Answer
New Zealand’s Manufacturing Activity Retreats in November
Senate Inaugurates Plan To Manage US Debt Ceiling
Bitcoin Retreats Below USD 50000
USD/CAD Moves Back On Oil’s Decline
BoC’s Gravelle: Concerns Over Inflation More Than Usual
WTI Crude Falls Sharply As Lockdowns Looming
Asia Is Not Rushing To Buy Extra Crude Oil From KSA
China Challenged By Sputtering Economic Dilemma
US Shares Retreat Despite Record Low Jobs Data
Macron Criticizes UK Government Over Brexit
EIA Reports Decline In Natural Gas Supplies
US October wholesale inventories surge
US Weekly Jobless Claims Lowest In 52 Years
