Petrol prices fell 2% MoM, putting pressure on US inflation, and Wall Street rallied, with the Nasdaq appreciating by 1%. On a monthly basis, US Inflation Headline in Nov. was only 0.1% MoM (Vs. Oct. 0.4% MoM) or recorded an annual inflation rate of 7.2% YoY (Vs. Oct. 7.7% YoY). The decreasing inflation is raising expectations of an increase in the Dec. FFR for only +50 Bps (Vs. +75 Bps) to the Upper Bound level of 4.50%, as well as suppressing the yield of UST2Y and UST10Y down to the level 4.22% and 3.50%, respectively.
Crude oil rose by 3%, both Brent and WTI, along with the hope of the US recession not falling deeper or happening within the long term. Investors are returned to be Risk-On for their risk assets, causing Wall Street to increase as US Inflation Headline sloped again. From the domestic side, the appreciation of the Technology Sector was up to 4%, pushing the JCI to close beyond the psychological level of 6,800. Amid investors’ focus on waiting for the Fed’s decision in response to the US inflation, NHKSI Research projects that today’s JCI has the opportunity to move bullish.
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