US business activity contracted again as the high-interest rates trend weighed the economy, the Dow briefly depreciating by 500 points before finally closing down 0.85 last week. In addition to the Fed’s discourse in continuing the FFR hike above 5% in 2023, investors responded negatively to the release of S&P Global US Manufacturing PMI and Services PMI data in Dec., which contracted to 46.2 (vs. Nov. 47.7) and 44.4 (vs. 46.2), respectively. Last week, investors were concerned that later the FFR hikes of 25Bps within the first two months, and March of 2023, would make the US recession go further and last for a longer period.
JCI attempted to return to 6,900 in the second week of 2022. According to a Bloomberg survey, BI is projected to close 2022 with a loosening monetary policy, and US Jobless Claims, which are likely to rise, might be the market’s positive catalyst this weekend. Initial Jobless Claims for the week ending on Dec. 17 are projected at 222K (+5.2% WoW), indicating that the Fed may loosen its monetary policy again. At the end of the 2022 World Cup match, and amid several sentiments, NHKSI Research projects that JCI has the opportunity to move bullish at the beginning of the week.
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