US President Joe Biden said on Friday that price pressures would ease as the global economy improves.
\u201cGasoline price drops are beginning to reach Americans and this should pick up, he added, saying that China might also decide to release more oil, though it has not done so just yet.
Managing Director of the International Monetary Fund, Kristalina Georgieva, said on Friday that she had already been concerned that the global economic recovery had been losing steam before the emergence of the Omicron variant.
Georgieva added that tariff reductions could also help global growth and said she was encouraged by the US Trade Representative looking into possible reductions.
As for the market\u2019s reaction, Georgieva\u2019s comments have not directly had an effect on market, but do fit into the broader Omicron worries that are causing US shares market sentiment to continue to deteriorate as the final close of the week approaches.
Economic Data
The number of rigs drilling for oil in the US. was unchanged in the latest week at 467, according to oil-field services company Baker Hughes Co. The rig count was 221 rigs higher than last year when there were 246 active rigs, Baker Hughes said Friday.
According to US Census Bureau data, US Factory Order rose 1.0% MoM in October.
This reading is above the expected 0.5% gain and marked an acceleration on the 0.5% MoM gain seen back in September.
Excluding transportation, orders were up 1.6% on the month also marking an acceleration on September\u2019s MoM growth rate of 0.7%.
Headline ISM Service PMI rose to 69.1 in November. The new reading has marked a record-high going back to 1997 when the survey began.
The Institute of Supply Management\u2019s headline Services PMI index rose to a fresh record high at 69.1 in November versus forecasts for a modest fall to 65.0 from 61.9 in October.
Sub-Indices
The Business Activity index rose to 74.6 from 69.8 in October.
The Prices Paid index fell to 82.3 from 82.9 in October.
The New Orders index held steady at 69.7 in November.
The Employment index rose to 56.5 from 51.6 in October.
Other Developments
Fed\u2019s Bullard\u2019s comments signaled the need of the Fed for a faster taper, considering the 4.2% unemployment rate \u201cas a good case to remove Fed support.\u201d
Over the PMI data, and as long as market\u2019s reaction is concerned, the US dollar got further tailwinds in wake of the strong ISM report, with the DXY pushing to fresh session highs in the 96.30s.
Crude oil prices edged higher on Friday following statements by OPEC+ that the group could review its policy to hike output if a rising number of pandemic lockdowns obstructs off demand.
Brent futures rose 90 cents, 1.3%, to $70.57 a barrel, while US WTI rose 55 cents, 0.8%, to $67.05. Losses of the week put both benchmarks on track to decline for sixth successive weeks for the first time since November 2018.
This morning\u2019s NFP data has left he FOMC in a gray zone. Key Fed officials have been lately focusing on a faster pace of tapering, with a possible policy shift occurring as soon as the 15 December\u2019s FOMC meeting, so a slower pace of wage growth may slightly ease some concerns about a wage-price inflation spiral, according to Wells Fargo analysts.
The FOMC will clearly be discussing a faster taper at its next meeting, but this morning\u2019s data does give the Fed an out if it would like to wait an extra six weeks until its following meeting in late January 2022.
Also Read
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US President Joe Biden said on Friday that price pressures would ease as the global economy improves.\u201cGasoline price drops are beginning to reach Americans and this should pick up, he added, saying that China might also decide to release more oil, though it has not done so just yet.Managing Director of the International Monetary Fund, …<\/p>\n","protected":false},"author":13,"featured_media":52794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,37,39,36],"tags":[7214,7903,6846,8166,7442,6871],"class_list":["post-56205","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-forex-markets","category-global-stock-markets","category-market-updates","tag-biden","tag-economic-growth","tag-oil","tag-omicron","tag-us-shares","tag-usd"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/56205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=56205"}],"version-history":[{"count":4,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/56205\/revisions"}],"predecessor-version":[{"id":56211,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/56205\/revisions\/56211"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/52794"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=56205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=56205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=56205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}