Lagging Indicator of the US labor market remains solid, the Fed’s continued Hawkish justification in November and December. US jobless claims for the week ending September 17, rose a modest 2% to as many as 213K claims, indicating the labor market remains resilient, amid the Fed’s aggressive tight monetary policy to cool inflation. Technology stocks that are synonymous with high debt ratios, responded negatively to the trend of rising interest rates, making the Nasdaq lead the decline in Wall Street markets, or fell more than 1%. Risk-Off also occurred in the bond market, the Yield Inversion spread between UST2Y Vs. UST10Y widened to close to 50Bps, or yields breached the 4% and 3.5% levels, respectively, the highest levels since the Subprime Mortgage crisis.
BI closed 3Q22 with BI 7DRRR +50Bps increase. Investors responded positively to BI’s efforts to reduce the potential for soaring inflation, following the increase of more than 30% in domestic subsidized fuel prices. BI’s tight monetary policy continued, raising the September BI 7DRRR by +50bps to 4.25%; after previously in August rose +25Bps. In the midst of regional stock markets that opened lower this morning, and a number of sentiments, NHKSI Research projects that the JCI today will move Bullish continues if it breaks out Resistance MA10/7,236-7,240, with Support: 7,210 / 7.188 / 7.127 / 7,100 / 7,000 and Resistance: 7,225 / 7,236-7,240 / 7,300-7,306 / 7355-7,377.
Download full report HERE.