Weekly Markets Diary – 25 November

Written by

OvalX team

Published on

December 1, 2022

Week Ahead

The US corporate reporting season has now largely wound down, with just Hewlett Packard amongst a few of the major names yet to update, keeping the focus on the macro picture.

On Friday we have the non-farm payrolls where it may be a continuation of bad news is actually good news for equity markets. As poor jobs data may suggest that the economy is at last cooling, and that this may allow the Fed to ease the pace on rate hikes.

So poor jobs number could actually see the markets rally next Friday, while an unexpectedly strong number could perversely be negative, as this would put pressure on the central bank to have at least one more 75bp rate hike.

Keeping the major focus next week on economic data. There has been a strong recovery posted in equity markets in recent weeks, based mostly on the hopes that data would back up the growing hopes that the Fed can start to ease the pace of rate hikes. Data will now need to back up these hopes else the sellers could yet appear to scale, and quite rapidly.

So we are not out of “bear market rally” territory just yet, and perhaps another positive CPI print is required later in December before more confidence can build that the October/November lows may end up being a major longer term low.

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Trading Calendar

Monday 28th November

Major Companies Reporting:

US 500:

UK 100:

Germany 40:

Major Economic Data Due:

No Major Data Due

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Tuesday 29th November

Major Companies Reporting: