Wall Street inches higher on back of economic data as holiday looms

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Wall Street shares closed higher on Friday, injecting a much-needed sliver of holiday cheer after traders probed new data for clues on probably Federal Reserve pondering.

The benchmark S&P 500 erased earlier losses to finish 0.6 per cent higher, ultimately dragging the Nasdaq Composite with it. The tech-heavy index closed up 0.2 per cent. Volumes had been typically gentle as year-end holidays started in earnest.

Friday’s features weren’t sufficient, nonetheless, to cease both benchmark closing decrease for a 3rd consecutive week — the primary such dropping streak since September. With simply 4 days of buying and selling left in 2022, the S&P 500 and the Nasdaq Composite have this yr misplaced about 20 per cent and 33 per cent, respectively, placing them on course for his or her worst performances for the reason that 2008 monetary disaster.

Elsewhere, the FTSE All World share index has shed a few fifth of its worth this yr, whereas Bloomberg’s broad mixture index of the worldwide bond market is off about 16 per cent.

“The past two weeks have been a weak gruel of fatalism mostly and halfhearted optimism,” mentioned Mike Zigmont, head of buying and selling and analysis at Harvest Volatility Management. “It’s a weird psychological condition and it strikes me that the market [and] investors need a rest.”

Treasuries slid, pushing yields on benchmark 10-year bonds to three.75 per cent — their highest this month. The two-year Treasury yield was up 0.06 share factors at 4.33 per cent. Debt markets closed early on Friday for the holiday.

Data earlier within the day confirmed US shopper revenue held up in November however spending slowed barely, largely consistent with economists’ forecasts. Also in-line had been inflation figures within the report, displaying the core private consumption expenditure value index — the Fed’s favoured measure of value pressures — rose 0.2 per cent month-on-month in November.

The annual charge of progress for the core measure cooled to 4.7 per cent in November from 5 per cent the earlier month.

Together with a larger-than-expected drop in orders for sturdy long-lasting items, the experiences offered “further evidence that the [US] economy has lost momentum”, mentioned Andrew Hunter, US economist at Capital Economics.

Slowing progress could encourage the Fed to reasonable its plans to tighten financial coverage additional. Policymakers raised rates of interest half a share level in December, following 4 consecutive 0.75 share level will increase. However, the central financial institution has additionally been clear that it plans to boost charges to simply above 5 per cent subsequent yr, up from the present goal vary of 4.25 per cent to 4.5 per cent, with no charge cuts till 2024.

Currency markets had been largely rangebound on Friday, leaving the greenback 0.1 per cent decrease towards a basket of six different worldwide currencies, however up 9 per cent for the yr.

Oil costs ticked higher, with worldwide benchmark Brent crude up 3.7 per cent at $83.97 a barrel.

Elsewhere in equity markets, Hong Kong’s Hang Seng index fell 0.4 per cent, China’s CSI 300 dropped 0.2 per cent, South Korea’s Kospi slid 1.8 per cent and Japan’s Topix misplaced 0.5 per cent.

The regional Stoxx Europe 600 was flat and London’s FTSE 100 ended a half-day UK buying and selling session marginally higher.



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