UK Inflation Rises Again; Crude Oil Volatile
NAGA | Nov 16, 2022 06:06AM ET
Plenty has happened over the past 24 hours, both within the geopolitical sphere and the financial trading markets. One of the main pieces of news is related to the missiles which landed in Poland yesterday evening, killing two citizens. The event triggered emergency meetings in Poland, NATO, and other global organizations.
So far, the markets have not strongly reacted, but investors are keeping a close eye on the situation as an escalation can create serious volatility. It is not yet known whether the missiles were fired from Ukraine or Russia, but most experts advise it's almost certainly an accident or fault in defense systems.
Within the market itself, one of the latest developments is coming from the UK, and it's good news for GBP/USD traders but not for citizens. The UK has confirmed that inflation rate in the country has hit a whopping 11.1%.
This is 0.4% higher than expected and a whole 1% higher than the previous announcement. Therefore, we can see a very different scenario between the US and UK. The US seems to be putting inflation behind them and has likely peaked. At the same time, the UK saw an increase and an increase of high magnitude.
Lastly, there has also been plenty of volatility on crude ol sparked by an incident in Oman. According to reports, an oil tank close to Oman was struck by a drone attack. In addition, the price is also influenced by the upcoming oil inventories this afternoon, expected to decline by 2 million barrels.
h2 S&P 500 - Technical View /h2The S&P 500 on the daily chart shows a bullish candlestick. However, it is still trading within the range formed on Nov.11 . Currently, indicators are providing neither a bullish nor a bearish signal due to the current sideways movement. However, traders can consider “breakouts” as potential indications of trends going forward.
Even though the price of the overall index has performed well due to the latest inflation figures, some economists are worried that investors are not pricing in the high risk of a recession in 2023. Tesla (NASDAQ:TSLA), for example, has struggled over the past month due to poor earnings and also concerns regarding Elon Musk. Investors are concerned that the chief may be forced to sell stocks again. Mr. Musk has already been forced to sell shares worth $4 Billion, but investors fear that further capital will be required.
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Walt Disney Company (NYSE:DIS) is also another company that has worried investors. The company is the latest firm to confirm they will look to offload part of their employment force and will also halt recruitment. Their latest earnings reports came in significantly below expectations. Revenue was $20.15 billion, which is lower than the forecast of $21.38 billion. The company’s Earnings per Share fell to $0.30 from $1.09. Both reports are considered to be poor for the company and its stocks.
Nonetheless, global stocks, including the S&P 500, have performed well as large institutions and funds take advantage of the weaker US dollar and potentially lower hike in December. Though traders should be cautious of resistance levels and if the risk of recession increases further. Lastly, this afternoon’s Retail Sales report may also influence the price of US Equities.
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