European stock markets are demonstrating multidirectional fluctuations in the course of trading on Friday, traders are assessing the next portion of statistical data.
The composite index of the region’s largest companies Stoxx Europe 600 had gained 0.13% to 439.90 points by 10:20 a.m. Ksk.
Germany’s DAX stock index declined during trading by 0.04%, Spain’s IBEX 35 – by 0.07%. At the same time British FTSE 100 added 0.37%, French CAC 40 gained 0.06% and Italian FTSE MIB gained 0.2%.
Germany’s retail sales rose 1.1% in November compared to the previous month, according to data from the country’s Federal Statistics Office (Destatis). Analysts polled by Trading Economics expected retail sales in the month before last to rise by 1%. The figure fell 2.8% in October, as previously reported.
Germany’s factory orders fell 5.3% in November compared with the previous month, the German Economy Ministry said. The index declined as much as possible since October 2021. Analysts, according to Trading Economics, on average expected a decrease of the index by 0.5%.
Consumer spending in France in November 2022 increased by 0.5% compared with the previous month, according to data from the National Statistics Office Insee. Analysts polled by Bloomberg expected a more robust rise of 1.1%. The consensus forecast of experts interrogated by Trading Economics provided growth of the index by 1%.
Market participants are waiting for the publication of the preliminary data on changes in consumer prices in the euro area in December, which will be made public at 12:00 KSC. Also, at that time, the European Commission will publish a composite index of confidence in the euro area economy for December.
Stellantis NV shares are down 1.2%. The European automaker must work to cut costs around the world so that it doesn’t raise the price of electric cars, keeping them “affordable” for the middle class, Chief Executive Officer Carlos Tavares said. Among the cost-cutting measures, he cited reducing the number of the company’s factories.
Norwegian hydrogen producer NEL ASA is leading the growth among the components of the Stoxx Europe 600 index, rising 6.3%. Also steadily rise in price papers of Swedish manufacturer of electrical appliances Electrolux AB (+5.2%) and the owner of the second largest in Europe clothing chain Hennes & Mauritz AB (+5%).
The leaders in the fall are the securities of Swedish media and entertainment company Viaplay Group AB, which are cheapening by 5.3%.
Dynamics of gold and foreign reserves of Ukraine from 2012 to 2022
http://www.minfin.gov.ua
A new package of U.S. military aid to Ukraine, including Bradley BMPs, will be announced Friday, Pentagon spokesman Patrick Ryder said.
“I can confirm that the announcement of the next batch of military aid to Ukraine is expected on Friday. As outlined by the White House, that assistance will include deliveries of Bradley combat vehicles,” he told reporters.
The Associated Press earlier reported citing U.S. officials that the U.S. will send Ukraine a new package of military aid worth $2.85 billion, which for the first time will include several dozen unified tracked Bradley platforms. This delivery will be the largest in a series of military equipment packages that the Pentagon has allocated to Kiev.
In addition to the Bradley, Ukraine will also receive HMMWV military cargo vans, MRAP armored wheeled vehicles with enhanced mine protection, as well as a large shipment of missiles and other munitions.
Reuters reported that the U.S. will supply about 50 Bradley infantry fighting vehicles to Ukriane.
Politico quoted its sources as saying that the United States for the first time will supply Ukraine with Sea Sparrow anti-aircraft missiles, ground-launched radar-guided missiles designed to intercept aircraft or cruise missiles.
The publication notes that only Taiwan has the land-based version of the Sea Sparrow in service. The US Navy and close allies use the ship-based version.
Oil quotations grew steadily on Friday amid publication of data on energy reserves in the U.S., which showed a decline of gasoline and distillate reserves in the country last week.
The value of March futures on Brent crude oil on London’s ICE Futures Exchange was $79.50 per barrel by 7:05 a.m. KSC on Friday. It was $0.81 (1.03%) above the previous session’s close price. At the end of trading on Thursday those contracts grew by $0.85 (1.09%) up to $78.69 per barrel.
The price of WTI futures for February at electronic trades of NYMEX grew by that time by $0.79, to $74.46 per barrel. By closing of previous trades the cost of those contracts grew by $0.83 (1.14%) to $73.67 per barrel.
Commercial oil inventories in the U.S. rose 1.69 million barrels to 420.65 million barrels last week, according to a weekly report from the nation’s Energy Department.
Commercial gasoline inventories fell by 346,000 barrels to 222.66 million barrels.
Commercial distillate stocks decreased by 1.43 million barrels to 118.78 million barrels.
Experts were expecting a 1.5 mln barrel increase of oil reserves, a 1 mln barrel decrease of gasoline reserves and a 1.17 mln barrel decrease of distillate reserves.
Since the beginning of the week oil prices fell by about 7% due to an increase in COVID-19 disease in China, which clouds the short-term outlook for oil demand in that country.
In turn, hawkish signals from the U.S. Federal Reserve (Fed) on the future direction of monetary policy are increasing concerns about a potential recession, writes Trading Economics.
The U.S. dollar rose against major world currencies in trading on Friday amid data showing the strength of the U.S. labor market, which may encourage the Federal Reserve (Fed) to keep raising rates.
The euro/dollar pair was trading at $1.0513 at 7:54 a.m. KSC on Friday, up from $1.0523 at the close of the previous session.
The value of the U.S. currency pair with the yen rose to 134.29 yen from 133.40 yen in previous trading.
The pound to dollar exchange rate fell to $1.1903 against $1.1911 the day before.
The ICE index showing the dollar’s movement against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krona) rose 0.23% in trading, while the broader WSJ Dollar Index gained 0.11%.
A report from the industry organization ADP on Thursday showed an acceleration in U.S. private-sector job growth. They increased by 235,000 in December, ADP said. Analysts on average had forecast an increase of 150,000 jobs, according to Trading Economics. In November, the figure rose by 127,000.
Investors are now waiting for official data on the U.S. labor market for December, which will be released Friday at 3:30 p.m. Ksk. Experts polled by Trading Economics on average expect the number of jobs in the U.S. to rise by 200K last month and the unemployment rate to remain at 3.7%.
Minutes from the Federal Reserve’s December meeting showed that none of the Fed’s policymakers thought it prudent to cut the benchmark interest rate in the early part of the year, as financial markets expect.
Meeting participants generally believed that “maintaining restrictive monetary policy for an extended period until inflation clearly moves toward 2 percent would be justified,” the minutes said.
At the same time, the U.S. Central Bank reiterated its desire to achieve a slowdown in inflation without an excessive weakening of economic activity, Bloomberg noted.
The euro/dollar pair traded at $1.0513 as of 7:54 a.m. KSC on Friday, compared to $1.0523 at the close of the previous session.
The value of the U.S. currency in a pair with the yen rose to 134.29 yen from 133.40 yen in previous trading.
The pound to dollar exchange rate fell to $1.1903 against $1.1911 the day before.
The ICE index showing the dollar’s movement against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krona) rose 0.23% in trading, while the broader WSJ Dollar Index gained 0.11%.
A report from the industry organization ADP on Thursday showed an acceleration in U.S. private-sector job growth. They increased by 235,000 in December, ADP said. Analysts on average had forecast an increase of 150,000 jobs, according to Trading Economics. In November, the figure rose by 127,000.
Investors are now waiting for official data on the U.S. labor market for December, which will be released Friday at 3:30 p.m. Ksk. Experts polled by Trading Economics on average expect the number of jobs in the U.S. to rise by 200K last month and the unemployment rate to remain at 3.7%.
Minutes from the Federal Reserve’s December meeting showed that none of the Fed’s policymakers thought it prudent to cut the benchmark interest rate in the early part of the year, as financial markets expect.
Meeting participants generally believed that “maintaining restrictive monetary policy for an extended period until inflation clearly moves toward 2 percent would be justified,” the minutes said.
At that, the American Central Bank confirmed its desire to achieve slowdown of inflation without excessive weakening of economic activity, Bloomberg agency notes.
Three dry cargo vessels with corn and sunflower meal departed from Ukrainian ports on Wednesday, the Joint Coordinating Centre (JCC) has reported.
“On January 4, three ships left Ukrainian ports, carrying a total of 197,851 tonnes of grain and other food under the Black Sea Grain Initiative,” the JCC said.
Three bulk carriers – Presinge (70,514 tonnes of corn), Shen Yu 79 (64,667 tonnes of corn) and Mona KH (44,670 tonnes of corn and 18,000 sunflower meal) – are heading to China.
Seventy applications to join the Black Sea Grain Initiative have been submitted, the center said.
In addition, six ships are awaiting permission to enter the Ukrainian ports, 26 loaded dry cargo ships are waiting to sail to their destinations.
“As of January 4, the total tonnage of grain and other foodstuffs exported from the three Ukrainian ports is 16,630,516 tonnes. A total of 1,239 voyages (616 inbound and 616 outbound) have been enabled so far,” the JCC said.
