Tuesday, November 16 is another busy day in the markets, with several interesting fundamental reports to look forward to.
The first important release today was on employment in the United Kingdom. The data showed that in September, unemployment fell to 4.3%, which is slightly better than the forecast of 4.4%. In addition, the August employment change report also exceeded investors’ expectations.
Moreover, average earnings in the UK increased more than expected as well, while the claimant count came in better than anticipated as well. Overall, the response of the UK labor market seems to be good.
The British pound has reacted positively to this news and is strengthening today. Note that good data from the United Kingdom increases the probability of a rate hike by the Bank of England next month.
The second major highlight of the market day is GDP growth rate estimates for the third quarter in the eurozone. Both the QoQ and YoY data met the forecasts exactly, coming in at 2.2% and 3.7%, respectively.
In the United States, retail sales for October exceeded investors’ expectations all around, with all measurements showing satisfactory growth compared to the previous month.
We expect data on industrial production in the United States later today. In addition, several representatives of the Federal Reserve will speak today, for the first time since the release of higher-than-expected inflation last week.
Today US stock indices will trade mostly flat, as the markets still await more concrete news about the long call between Presidents Biden and Xi Jinping yesterday.
Meanwhile, Bitcoin and other cryptocurrencies are losing positions rapidly today. The reason for this is a reform that is part of the Infrastructure Bill just passed by Democrats, which is going to ask people to report large-scale crypto transactions to the IRS.
