Global Market- updates this week & Gold in Win-Win situation?
This week we will cover US economic data, Japan ‘s continuous bond buying to support yield and China reopening fail to cheer the commodity market and European inflation number back to single digit. We will also discuss how gold could in a win-win situation in near term.
1) U.S. Economic data – this week
2) Bank of Japan – 4 rounds of unscheduled bond buying after raising bond yield tolerance from 0.25% to 0.50%.
3) China re-opening from 8-Jan-23
4) EURO Zone inflation back in single digit: December reading @ 9.2%
5) Gold @ $1867 – Win-Win situation?
Equichain Wealth Advisors: Market View & Opinion
Global market has entered into some kind of loop as we define them and the way it reacts to US economic data.
• Market reacts downward to weak economic data on recession fear and slowdown in earnings growth.
• Market reacts downward to strong economic data on fear that US Fed will raise interest rate further.
Upcoming economic data and quarterly result season starting from next week will provide important cues and market will show decisive direction by 1st week of February 2023 as next round of central banks meeting scheduled starts with US Fed meeting outcome on 1-Feb-23.