North American News
Major US stock indices snap 4-day declines – only barely
- Little gains in the major indices
The 3 major US stock indices are ending the day marginally higher. Although small, the gains were good enough to snap 4-days of declines in the major indices.
The final numbers are showing:
- Dow Industrial Average rose 92.20 or 0.28 percent at 32849.75
- S&P index rose 3.96 points or 0.10% at 3821.61
- NASDAQ index rose 1.09 points or 0.01% at 10547.12
- Russell 2000 rose 9.435 points or 0.54% at 1748.01
The gains today did little to dent the month declines:
- Dow is down -5.03%
- S&P is down -6.34%
- NASDAQ index is a down -8.03%
- Russell 2000 is down -7.344%
US Housing starts for November 1.427M vs 1.4000M estimate
- US housing starts and building permits for November 2022
- Housing as housing starts 1.427M vs 1.400M est
- Last month housing starts 1.434M revised up from 1.425M
- Building permits 1.342M versus 1.485M estimate
- Last month building permits 1.526M
- Housing starts fell -0.5%
- Building permits tumbled -11.2%
- Single-family permits -7.1%
- Multifamily permits -16.4%
- Housing completions 1.49 million which is 10.8% above the October revised estimate of 1.345 million. In November 2021 the housing completions were at 1.406 million
Atlanta Fed Q4 GDPNow +2.7% vs +2.8% prior
- Q4 growth tracker continues slide but it’s still at a healthy clip
Today’s housing starts data shaved 0.1 pp from the Atlanta Fed GDP tracker but it’s still well-above economist estimates.
Commodities
Gold rises $30 to test the December high
- Gold benefits from FX volatility
Gold was a solid place to camp out in a rough global market in 2022. It’s trading at $1815 at the moment, which is just a shade below the Dec 31, 2021 closing level of $1829. Compare that to stocks, bonds or crypto and it’s a big win but what gets overlooked is how well gold did in non-USD terms.
On the fundamental side, the US confiscation of Russian currency reserves is a factor that should be a tailwind for gold for decades. The era of sovereigns piling into USD reserves isn’t over but it’s crested and the marginal dollar may now find its way into gold. Central bank buying in Q3 data was strong and I expect more of the same in Q4.
Combine that with the 2023 peak in global central bank rates along, a looming eurozone debt crisis, the crypto crash and plenty of elements are in place for a long-term bull market. The ebb and flow of inflation and currency fluctuations are going to add more volatility this year but for 2022 it’s safe to say that gold is one of the few safe haven assets that passed the test.
Precious metals could face considerable setback potential – Commerzbank
Latest surge in precious metals prices was presumably supported by speculative buying. Thus, the sector faces considerable setback potential, strategists at Commerzbank report.
Potential for further gains could be limited
“The surge in precious metals prices to multi-month highs that has been observed since early November is likely to have been driven by speculative buying.”
“The potential for further gains will be limited if speculative financial investors rethink their recently optimistic attitude towards precious metals given the prospect of more pronounced interest rate hikes next year.
“If previous long positions were to be liquidated or new short positions built up, prices could even face considerable setback potential.”
WTI crude oil (January) settles $0.85 higher at $76.23
- Up 1.12% on the day
The price of WTI crude futures are settling at $76.23. That’s up $0.85 or 1.12%.
The high for the day reached a $76.96. The low for the day was at $74.46
EU News
European equity close: There goes Monday’s gain
- Closing changes in Europe
- Stoxx 600 -0.4%
- German DAX -0.5%
- France’s CAC, -0.4%
- UK’s FTSE 100 +0.1%
- Spain’s Ibex +0.7%
- Italy’s FTSE MIB +0.0%
Other News
Japan top currency diplomat Kanda says no comment on market moves
- Kanda says does not want to comment so as to avoid causing any unintended effect
That kind of reads like when two no’s make a yes. But if their main worry at this stage is rising inflation pressures, then a stronger yen is definitely more desirable now.
New Zealand data – December consumer confidence -8.6% m/m (prior -5.5%)
ANZ Consumer Confidence Index for December slumps further. To its lowest ever.
- December at 73.8 from November’s 80.7
Cryptocurrency News
Solana price gets relief after surprise Bank of Japan intervention
- Solana price jumps over 3% as cryptocurrencies defeat all risk assets intraday.
- SOL ties up with gains and looks set to break the high of Monday.
- Jump toward $15.07 is possible if Solana bulls can bank off this.
Solana (SOL) price jumped during the ASIA PAC trading session as a surprise yield curve intervention from the Bank of Japan shook up markets. This a perfect example to keep in mind that correlations are not always being abided by, as cryptocurrencies jumped while equities sold off in market woes. If crypto bulls can follow through with this rally in Solana price, expect to see them knocking at the door around $15.07, to print a new high for December.
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