Lack of market logic
2022.12.05 01:01
Lack of market logic
Budrigannews.com – Tom Westbrook’s outlook for the day on European and global markets is as follows:
The Fed is out of commission, and the World Cup is getting serious.
With the exception of the U.S. ISM services survey and European retail sales data on Monday and central bank meetings in Canada and Australia later in the week, the calendar for this week is relatively light, allowing traders to concentrate on soccer.
The dollar continued to fall in Asia as China eased its strict COVID-19 restrictions piecemeal, while the yuan reached a high of 7 to the dollar for the first time in two and a half months. The price of oil jumped by 3.5%.
Positioning suggests that bets against the dollar are still fairly light, and they even got a little bit lighter this past week.
China continues to experience frustration and confusion on the ground.Although Beijing has eliminated testing requirements for public transportation, negative results are still required to enter many buildings.
Despite occasional protests, markets remain optimistic about the momentum. (NYSE:) Morgan Stanley,was the latest major investment firm to express optimism on Monday.
In addition, the G7’s $60-per-barrel price cap on Russian oil begins on Monday in Europe. Not satisfactory what implies at oil supply and costs, since Russia says it will not comply with the action, regardless of whether that implies cutting creation.
Japan and South Korea, Asia’s last contenders, face Croatia and Brazil, respectively, on the field.
Important developments that may have an impact on markets on Monday:
Retail sales in the Eurozone, U.S. orders for durable goods, and the ISM non-manufacturing PMI in November
