Risk appetite increased during Wednesday morning as traders await the Federal Reserve to announce a lower rate hike at its FOMC monetary policy meeting due later today. The reasons can be attributed to the dismal US inflation data and hopes of economic recovery stemming from the high chances of the Fed pivoting early in 2023.

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S&P 500 Futures posted a three-day uptrend near 4,065 points, up 0.25% intraday, while the 10-year Treasury yield fell one basis point (bps) to 3.49% after snapping a three-day downtrend. However, the DXY index fell after the dismal US CPI data fell to 7.1% YoY in November compared to previous expectations of 7.3% and 7.7%.




Further, CPI ex Food & Energy known as core CPI also fell to 6.0% YoY in November compared to market estimates of 6.1% and the previous reading of 6.3%. Reuters reported data from Federal Reserve policy rate futures traders increased bets on Tuesday that the US central bank will ease the pace of interest rate hikes as early as 2023, after a government report showed inflation eased sharply in November.

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It is worth noting that negative risk catalysts around China and pre-Federal Reserve concerns seem to be limiting the latest market moves. IMF Managing Director Kristalina Georgieva expects economic growth to slow down for China due to the recent spike in daily Covid-19 cases. At the same time, ADB cut its 2023 economic growth forecast for China to 4.3% from its previous estimate of 4.5% in September. In short, global traders are painting pre-Fed concerns as the latest Fedspeak contrasts with the dovish bias and pivot expectations during early 2023.

Above is daily information about the development of the world stock exchange. Continue to update the latest information through the GIC journal which will be announced every day. You can also trade Forex on the GICTrade application with its latest feature, an ECN account, enjoy the advantages of the latest features with the lowest spread starting from 0 Rupiah!

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