The Fed’s dovish has closed the FFR in 2022 at 4.5%. In the rest of the year, the Fed may consider a smaller FFR hike (Surv. +50 Bps) in December, after a discourse about an increase of +75 Bps to 4% next November. The DJIA gained 2.5% or led Wall Street’s gains. Investors also responded positively to several 3Q22 Earning Results that exceeded market expectations. Moreover, selective Risk-On also occurred in the bond market, and the UST2Y short tenor yield fell 10 Bps to a level below 4.5%. On the other hand, the Fed’s Dovish expectations were pressuring the USD Safe Haven indicator. DXY fell to 111 points after being close to its highest level, 114 points.
Investors look forward to Eurozone and US manufacturing data amid the risk of a global economic recession in 2023. Based on a Bloomberg survey, S&P Global Eurozone Mfg. PMI Oct. is projected to record a deeper contraction or be at the level of 47.9 (Vs. Sept. 48.4). Additionally, S&P Global US Mfg. PMI is projected to expand or be at level 51 (Vs. Sept 52) in the same period. In addition to the domestic Earning Result season, the external economic data release dominated this week’s market sentiment. Furthermore, Wall Street’s success strengthened by more than 2% over the weekend, making NHKSI Research projects JCI to move Bullish today.
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