“The broader picture is of an overheated job market where demand significantly exceeds supply,” Powell told reporters in Washington earlier this week. “We’re continuing to look for signs that there’s kind of the beginning of a gradual softening and maybe there is, but it’s not clear to me because wages aren’t going down, they’re just moving sideways at higher levels.”
The CME Group’s FedWatch remains divided on the chances of a 75 basis point rate hike in December, with a chance of a smaller 50 basis point move pinned at 47.2%.
The benchmark 10-year Treasury yield was about 3 basis points higher at 4.16%, while the US dollar index, which tracks the greenback against a basket of its global counterparts, was 0.7% lower at 112, 14.
On Wall Street, the S&P 500 was up 33 points in trading opening hour, while the Dow Jones Industrial Average gained 265 points. The tech-focused Nasdaq rose 72 points.
In terms of individual stocks, Starbucks
( shares rose 8.9% after the world’s largest coffee chain delivered stronger-than-expected fourth-quarter results on Thursday, as solid US sales offset a prolonged slump in traffic in China. SBUX)
( shares plunged 6% after the online payments group forecast softer-than-expected sales for the holiday quarter, marring a solid September quarterly update. PYPL)
Global stocks, meanwhile, are making solid early gains on Friday after reports suggest China is preparing to ease one of its crucial Covid restrictions — fines applied to airlines for bringing in infected passengers — and US auditors are reviewing China. – companies listed on US markets.
The reports sent stocks surged overnight in Asia, with Hong Kong’s Heng Seng index rising 5.4% to cover its best weekly gain in more than a decade, and the region-wide MSCI ex-Japan index rose 2.31% towards the end of trading.
Oil prices were also on the move on Friday, with WTI crude oil futures for December delivery rising $3.28 to $91.45 a barrel, largely on demand amid reports of easing Covid restrictions in China,” the world’s largest energy importer.
In Europe, the UK’s FTSE 100 was up 1.94% as the pound remained near a two-week low of 1.1271 following a warning from the Bank of England, which yesterday raised its benchmark lending rate by 75 basis points to 3% — that the country is in a deep and prolonged recession. The region-wide Stoxx 600 was up 2.22% during early trading in Frankfurt.