The Market Brief
Hey team. US stock markets will be closed today in observance of a national day of mourning for former President Jimmy Carter.
Here is a short recap of the last session and what’s coming next for the market!
Macro Viewpoint
The US state funeral and national day of mourning for former President Jimmy Carter is recognised as a federal holiday.
Minutes released from the Federal Reserve's December meeting indicated that nearly all committee participants observed increased upside risks to the inflation outlook.
This has heightened investors' concerns that there may be fewer rate cuts than previously anticipated this year.
On Friday, the US employment report will provide traders with fresh insights into the strength of the US economy and the Federal Reserve's interest rate path.
Money markets are pricing in one full 25-basis-point rate cut this year, fewer than the two projected by Federal Reserve officials during their December meeting.
Prior Session Deep Dive
When a market is balancing or experiencing significant chop, it’s a way of communicating that is controlled by uncertainty and is anticipating additional information, in the form of a catalyst, prior to beginning its next auction.
Wednesday’s session experienced another pullback, with value migrating lower. Buying efforts were completely negated as bulls failed to sustain their activity above the settle.
This triggered the initial phase of our bearish scenario, allowing the market more room to fall toward our key reference pivot for the session, which acted as the absolute bottom. This, in turn, triggered a 55-point bounce, leading to rotations toward the settle.
The market is expected to experience its next directional auction tomorrow, with the key employment report providing more clues about the sustained strength or weakness of the economy.
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