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ISM Service Index sends lower stocks, Crypto volatility

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Wall Street is still debating whether this bear market rally is over. ​ With the exception of an inflation-fueled ISM Services index, it should be relatively on the data front until Friday’s one-two punch of PPI and the University of Michigan report. ​

Many traders are wondering if next week’s Fed decision will be the last one with a rate hike. ​Fed fund futures forecast a 50bps rise on December 14thTh The February 1stst It is still a toss up between a 25-bp increase and one final half-point increment. The service sector of the economy will continue to grow and inflation will be more stubborn. ​There are still high risks that the Fed will need to do more and this is why the economy must go into recession. ​ This next recession however won’t be rescued by quick Fed easing or a fiscal response as that will fuel inflation risks. ​ ​ ​ ​ ​

US Data

Unexpectedly, ISM’s services index improved in November. However, prices paid were slightly lower. ​This could suggest that wage pressures are likely to remain high. The headline index came in at 56.6, higher than the 53.3 estimate, and prices declined from 70.7 – 70.0. ​ The…



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