Stansberry Research

Thursday Afternoon Market Recap

Stansberry NewsWire

Afternoon Market Recap:

U.S. equity markets finished Thursday higher.

Domestic equity markets finished higher after an eventful Thursday that saw mixed economic data. Major headline today came from the U.S. Bureau of Labor Statistics' December Consumer Price Index ("CPI") which showed headline inflation declined 0.1% on a monthly basis and annual inflation growth falling in line with expectations at 6.5%. Fed speak remained hawkish with James Bullard saying that the central bank needs to hike rates above 5% as soon as possible. Philadelphia Fed's Harker also offered support for a 25-basis-pointrate hike in the February FOMC meeting. Investors reacted optimistically that cooling inflation signaled the Fed may stop rates hikes sooner than expected. Tomorrow, investor focus will turn to the University of Michigan Survey of Consumers' inflation expectations, and earnings from Wall Street banking giants.

Within the S&P 500 Index, eight of the 11 sectors finished higher...

European markets finished higher. Eurozone markets finished higher on cooler U.S. inflation data that boosts speculation that the Federal Reserve may slow rate hikes. In comparison, the European Central Bank ("ECB") is expected to continue its aggressive rate policy which should support a rally in the euro as the U.S. dollar weakens further. Like the markets stateside, the focus is also on earnings, with investors looking for any positives coming out of the holiday spending season. Additionally, the ECB's most recent Consumer Expectations survey revealed that inflation expectations declined while nominal income growth expectations rose.

Asian markets finished higher. Markets finished mostly higher on a quiet trading day as investors in Asia await a potentially pivotal U.S. CPI reading later this evening. This comes on the heels of China December CPI accelerating faster than expected and the Producer Price Index slowing as factory output fell due to the economic conditions surrounding COVID-19 reopening plans. The Bank of Japan said it will review side effects of ultra-easing policy next week, sending the yen lower. And in Korea, investors look toward tomorrow's rate policy decision that is expected to see a 25-basis-point increase.

(Narratives written as of local market close.)

Risk:

VIX -10.72%

Bitcoin +7.45%

Ethereum +6.36%

Growth:        

WTI crude +1.23%

Brent crude +1.52%

Natural gas +0.25%

Copper +0.17%

Safety:

Gold +1.18%

Silver +1.95%

Tomorrow, we're on the lookout for consumer inflation expectations and production figures from Europe.

Have a great evening!

C. Scott Garliss and Kevin Sanford