Global Market – In focus – U.S. Economic data & Geo-political tension
This week will on U.S. economic data and geopolitical tension as corporate earnings will start from next week. So next week we will review corporate earnings of global companies and its impact on global as well as Indian market.
Now let us focus on the data released this week. Most of the jobs data indicate strong economy, JOLTS Jobs opening came in-line with estimate while average hourly earnings were up by 0.40% Vs estimate of 0.30%. Non-farm employment change came at 216k Vs estimate of 168k.
Market trend remains unclear as rally seen in December 2023 was on narrative of interest rate could starting declining earlier then estimate. Strong economic data would mean the rate could stay at higher level for some more time. US FOMC meeting minutes released this week also failed to provide clear trend and incoming data would be important to watch out for.
Geo-political tension – Red Sea Crisis
Freight costs, including surcharges, have increased by over 500% amid the Red Sea crisis as shipping companies were forced to take the longer route via Cape of Good Hope, according to the Federation of Indian Export Organizations.
Equichain Wealth Advisors: Market View & Opinion
US Market in December 2023 rallied from 3.81% to 4.94% on major indices will now need positive trigger from corporate earnings.
We would focus on corporate earnings where major US Banks are due to announce their earnings next week. As we have seen economic data is U.S. continues to be strong will result in positive surprise in corporate earnings.