2023 is here, and the markets are living up to their reputation for volatility.
After all, volatility has defined global markets in 2022.
From the Fed’s outsized rate hikes to geopolitical tensions and the crypto winter all contribute to major market movements.
Although the Fed is trying to achieve a soft landing for the economy in 2023, the central bankers know that the process would not be easy.
The International Monetary Fund (IMF) chief Kristalina Georgieva said this week that 2023 is going to be a tough year for the global economy as the United States, China and Europe are experiencing a slowdown.
She added that the IMF expects one-third of the world economy to be in recession in 2023.
As these trends play out, there will be potentially major movements in stock, Forex, commodity and crypto markets. As always, our top analysts will be keeping a close eye on the markets. And when they see any exciting opportunities to potentially profit from, you will be the first to hear them. (Click hereto get their latest market predictions).
With that, let’s quickly have a look at some of the top market stories this week…
Here’s what moved the markets most:
1. The Federal Reserve’s December monetary policy meeting minutes showed the central bank is worried about any market perception that its commitment to fighting inflation was flagging. The minutes also showed that policymakers do not envisage interest rate cuts in 2023.
2. The U.S. jobs market closed out 2022 on a high note as employers added 235,000 jobs in December. The U.S. ADP private payrolls report showed the goods-producing sector increased by 22,000, while service providers added 213,000 jobs. This meant a strong labor market despite the Fed’s attempt to tame inflation and suggested more room for interest rate hikes.
3. Eurozone inflation rose at an annual rate of 9.2% in December, down from the double-digit levels of 10.1% in November and 10.6% in October. This was seen on the back of lower energy prices and sparked hopes that the consistent rise in inflation has finally peaked.
4. November’s Job Openings and Labor Turnover (JOLTS) report showed the job openings fell less than expected in November as the labor market remains tight.
5. China’s December manufacturing activity contracted sharply as the nation saw a surge in Covid infections which hit demand. The Caixin Manufacturing Purchasing Managers Index (PMI) read 49.0 in December, weaker than last month’s reading of 49.4.
All in all, it was a busy week jam packed with some big macro developments!
These events can likely move the Forex and may offer some of the best potential market opportunities if you have a solid strategy in place. Click here to get this strategy in our upcoming session!
See you next week!
To your success,
Jared Martinez
Founder, Market Traders Institute |
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