US investors struggled through the week with attempts to interpret the next rate hike by the central bank. Once again statements from Fed members and economic data are weighed. After the most recent setbacks, most of the indices ended the week in positive territory.
After a few days at a discount, the US stock exchanges closed the last trading day of the week with a plus. The focus remained unchanged on the US interest rate policy. The Dow Jones index gained 0.6 percent to 33,746 points. For the broader S
On the economic side, the index of leading indicators for October fell by 0.8 percent compared to the previous month. A decline of only 0.4 percent was expected. However, existing home sales in October fell less sharply than economists had forecast.
On the foreign exchange market, the dollar was moderately firmer. The dollar index rose slightly by 0.2 percent. The market does not believe the hawkish Fed comments, according to Commerzbank. Analyst You-Na Park-Heger also emphasized that the statements were not really new. Fed members continued to try to dampen expectations that the Fed could lower interest rates in the course of the next year. Instead, interest rates could remain at the peak for longer, which is likely to be reached sometime next year.
Oil prices eased somewhat. Concerns about China’s zero-Covid policy are likely to further cloud demand prospects. There are also other signs that demand is weakening, according to analysts at ANZ. “Demand for winter supplies has fallen despite the looming deadline for European sanctions on Russian crude,” it said. The price of Brent fell by 2.2 percent, the WTI price fell by 1.5 percent.
On the US bond market, yields continued to expand their previous day’s gains with the interest rate discussions. The 10-year yield rose 4.7 basis points to 3.82 percent. Gold prices fell with the slightly firmer dollar and rising yields. The price of the troy ounce fell by 0.6 percent.
Applied Materials shares rose 0.2 percent. The semiconductor company turned over more than expected in the fourth quarter and sees continued momentum at the start of the new fiscal year. Palo Alto Networks advanced 7.0 percent. The provider of network security solutions reported better than expected business figures. The company also provided a positive outlook. Palo Alto also announced it would acquire Cider Security for $195 million.