Inflation indicators closely watched by the Fed slow down as virtual currency-related stocks rebound sharply and Bitcoin returns to $42,000 | 27th Financial Tankan

9 months ago 74

1/27 (Saturday) morning market trends (compared to the previous day)

traditional finance

NY Dow: 38,109 +0.16%
Nasdaq: 15,455 -0.36%
Nikkei average: 35,751 -1.34%
USD/JPY: 148.1 +0.39%
Gold futures: 2,018.2 +0.02%
Microsoft: $403.9 +0.23%
NVIDIA: $610.3 -0.95%

Today’s NY Dow continued to rise, while the Nasdaq fell slightly due to a pause in buying of AI and semiconductor stocks. Also, the S&P 500 fell slightly after six days of continued gains.

The December US personal consumption expenditure announced last night was +0.7%, exceeding expectations of +0.5%. Steady growth in wages appears to have boosted consumption.

On the other hand, the Core PCE Core Price Index, which is an inflation indicator that the Fed emphasizes, continued to slow down by +0.2% from the previous month, lower than the market expectation of +0.3%. The price index for the service sector, excluding housing and energy, also increased by 3.3% year-on-year, down from 3.5% in November last year. Personal income was +0.3% month-on-month, in line with market expectations.

Given the dovish data, the Federal Open Market Committee (FOMC) is expected to keep interest rates unchanged at their highest level in 20 years at next week’s meeting. Furthermore, expectations for an interest rate cut from March seem to remain high.

Today’s main market materials are as follows:.

Intel is -11.9% today after yesterday’s weak results.
Apple, Microsoft, Alphabet and others are scheduled to announce their financial results next week.
The consumer price index (preliminary figures) for the Tokyo wards increased by 1.6% in January, falling below the Bank of Japan’s “2%” target. (The price index for Tokyo’s wards is considered a leading indicator of national figures.)

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Important economic indicators/events from this week onwards

1/31 (Wednesday) 0:00 U.S. January Consumer Confidence Index
1/31 (Wednesday) 22:15 US January ADP employment statistics
2/1 (Thursday) 4:00: Policy rate announcement after FOMC close
2/2 (Fri) 22:30 U.S. January unemployment rate

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Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks

Virtual currency related stocks have rebounded significantly

Coinbase｜$125.2 (+3.4%)
MicroStrategy | $494.5 (+8%)
Marathon Digital Holdings | $17.8 (+9.7%)

Cryptocurrency-related stocks rebounded sharply today as Bitcoin returned to the $42,000 level. Expectations for a decline in selling pressure in the Bitcoin ETF GBTC provided a tailwind.

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Virtual currency market rise