Overnight stock market
The three major U.S. stock indexes collectively closed sharply higher on Wednesday, with the Dow up 1.08%, the NASDAQ up 2.15% and the S&P 500 up 1.63%. Large technology stocks and anti-epidemic concept stocks rose generally, while Chinese e-commerce stocks fell. Apple closed up 2.85 percent, with a total market capitalization approaching $3 trillion. Previously, the Fed interest rate meeting came to an end, which not only accelerated the purchase of bonds as the market expected, but also provided a timetable for how interest rates could be raised in the next two or three years.
Commodity markets
As of the close, U.S. WTI crude futures closed up 1.09 percent at $71.52 a barrel; Brent crude futures rose 0.94 percent at $74.41 a barrel; and U.S. natural gas futures rose 1.76 percent at $3.827/million in british heat.
In precious metals, Comex Futures closed up 0.33% at $1777.6 an ounce; Comex Futures closed up 0.64 percent at $22.06 an ounce.
Market news
[Fed: Taper doubles speed, most members expect three rate hikes next year]
On December 15, local time, the Federal Reserve issued a statement saying that it will accelerate the reduction of bond purchases and is expected to raise interest rates three times in 2022 to control the rate of inflation. The Fed first announced in November that it would scale back its monthly bond purchases, and a statement on the 15th of this month said it would accelerate the pace of the drawdown. Starting tomorrow in January, the Fed will reduce its purchases of $20 billion worth of Treasuries and $10 billion worth of mortgage-backed securities. According to the current estimates of Fed officials, the Fed's benchmark interest rate will rise to 0.9% in 2022, up from 0.3% expected in September.
[Powell: Subsequent interest rate hikes will be faster than seven years ago, and the policy position has nothing to do with the nomination]
In the early morning of Beijing time on Thursday, after the release of the latest FOMC resolution statement, Fed Chairman Powell held a press conference, Powell said that the main reason for the policy adjustment is the progress of the job market and rising inflation, and stressed that although The Aumechon poses a risk, the economy itself is still in the track of a strong recovery. Speaking about the decision to double down on bond purchases, Powell said that under the rapid recovery of the job market and inflationary pressures, the economy no longer needs support of this scale, and ending bond purchases earlier can also give the Fed more policy space. Powell also talked about the comparison between next year and the exit from QE in 2014, making it clear that there is a significant difference in the economic background behind the two, and the current economic situation is much stronger, so it is unlikely that there will be such a long delay between ending QE and raising interest rates.
[Fauci: The current strengthening of the effectiveness of the Omicron does not require the development of a specific vaccine]
White House chief medical adviser Anthony Fauci said on Wednesday, "The currently available COVID-19 vaccine is effective against the Omilon variant and does not require the development of a vaccine against specific variants." Fauci said that although the two-dose vaccine line of Pfizer and BioNTech has been severely affected by The Omilon, it still provides considerable protection against severe COVID-19. The protection rate of the two doses of the vaccine against infections fell to 33%, compared with 80% before the advent of Theomilon. In South Africa, however, two doses of the vaccine remain 70 percent effective in preventing hospitalizations of people infected with Omiclon, Fauci said.
[U.S. House speaker Pelosi opposes banning members of Congress from holding individual shares]
As for the idea of banning members of Congress and their spouses from holding individual shares, Nancy Pelosi, the speaker of the US House of Representatives, made clear on Wednesday local time that he was opposed, although there may be a conflict of interest between his legislative duties and his personal financial situation. Asked at a news conference in California if she would support the ban, she told reporters: "No, we're a free-market economy and members of Congress should be able to get involved." "Since the start of the COVID-19 pandemic, some MPs have sparked huge controversy over stock purchases.
[Oracle plans to add two new cloud regions in Europe, planning to add 8 next year]
Oracle said Wednesday that as the pandemic has increased demand for cloud computing tools from private and public sector organizations, the company has opened a Cloud regions in Stockholm, Northern Europe, and Milan, Italy. Oracle already has cloud regions in Europe in Germany, the Netherlands, France, the United Kingdom and Switzerland. Including the two new cloud regions, the company will have cloud regions in 36 regions around the world, with plans to add another 8 by the end of next year. The company has already signed contracts with potential customers in Europe and plans to open a second cloud region in France and Spain.
[Tesla responds to fatal car accident in Paris: not caused by technical failures]
According to reports, a spokesman for the French government said today that Tesla has informed the French government that there is no indication that a fatal Tesla Model 3 taxi accident in Paris was caused by a technical failure. For now, the largest taxi platform in Paris has suspended the operation of Tesla. On Saturday, an accident occurred when one of the company's drivers drove the Model 3, killing 1 person and injuring 20 others. A person familiar with the matter said three of them were seriously injured. Gabriel Attal, a Spokesman for the French government, told reporters: "We have been in contact with Tesla's management. They told us that there were no technical problems with their vehicles. He also added that the government is awaiting the findings of the judicial investigation, which are still ongoing.
【Roblox's November operating data unexpectedly weakens, the number of daily active users reaches 49.4 million】
According to Roblox, the number of daily active users of the platform in November was 49.4 million, although up 35% year-on-year, but significantly weaker than the 50.5 million daily active days in the first 27 natural days of October. Previously, the market expected the November data to be at least the same as the data during the normal operating period in October. The Roblox platform expects subscription fees to be between $208 million and $211 million in November, up 22%-24% year-over-year, which also means that the average subscription fee for daily active users is down 8%-9% year-on-year. Faced with an unexpectedly weaker performance, KeyBanc analysts also warned that the weak business status could continue into December, further dragging down the fourth-quarter earnings report.
[Foreign holdings of U.S. Treasuries rose to record high in November]
The latest U.S. Treasury account figures show that foreign holdings of U.S. Treasuries rose to a record $7.65 trillion in November; combined foreign holdings of U.S. Treasuries increased by $99.6 billion from October; Japan's holdings of U.S. Treasuries rose by $20.8 billion to a record high of $1.32 trillion; and China's holdings of U.S. Treasuries increased by $17.8 billion to $1.065 trillion.
U.S. Senate Votes to Pass Fiscal Year 2022 Defense Authorization Act
The U.S. Senate on Wednesday passed the National Defense Authorization Act worth about $770 billion in fiscal year 2022 by a vote of 89 to 10 against. The bill will then be sent to the White House, where President Biden will sign it into law. The bill reportedly not only authorizes funding for the Department of Defense, but also outlines the U.S. military's policy agenda.
[Biden administration will strengthen vehicle emission limits, final standards will be released in a few days]
The Biden administration is poised to put tighter limits on emissions from cars and trucks to curb U.S. greenhouse gas emissions and thus combat climate change. The standards, which will apply to small cars and light trucks in models 2023 to 2026, will reverse the easing of environmental regulations during the Trump administration era, with specific policies to be released within days, according to three people familiar with the matter.
【U.S. retail sales growth in November fell short of expectations】
According to data released by the U.S. Department of Commerce on December 15, local time, U.S. retail sales in November increased by 0.3% compared with Retail sales in October, an increase of less than the 0.8% previously expected by economists. U.S. department store sales fell 5.4 percent in November; sales of electronics fell 4.6 percent; online retailers were flat; and sales of music, books and sporting goods rose 1.3 percent, the data showed. The media generally believes that retail sales growth in the United States in November was lower than expected, indicating that consumers are suppressing shopping amid inflation at a 40-year high.
[The number of confirmed new crown cases in the United Kingdom in a single day hit a record high, and the Omilon strain accelerated its spread]
The United Kingdom added 78,610 new COVID-19 cases on 15 December, breaking the country's single-day high of 68,053 on 8 January. Just a few days ago, British Prime Minister Johnson announced the resumption of remote work from home to deal with the Ami kerong variant and buy time for the injection of the booster vaccine.
[German economic research institute lowers the country's economic growth forecast]
On December 15, local time, the Geehr Institute for World Economic Research in Germany lowered Germany's economic growth forecast. The institute believes that due to the impact of the fourth wave of the epidemic and supply bottlenecks, Germany's economic growth forecast for 2022 is 4.1%, far below the 5% forecast in September. The institute said that as with previous waves, the wave of infections in the fourth wave of the epidemic has severely affected the intensive service industry, and Germany's economic recovery will slow as a result. If the epidemic subsides in the spring of 2022, the German economy is likely to usher in a strong recovery, so the institute has also raised germany's economic growth forecast for 2023 from 2.3% to 3.3%. Germany's economic growth is expected to remain at 2.6 percent in 2021.
[Italy's inflation reached its highest level since September 2008 in November]
According to data released by the Italian National Institute of Statistics on December 15, the Italian household consumption index (including tobacco) increased by 0.6% month-on-month in November and 3.7% year-on-year, reaching the highest level since September 2008. Italy's National Statistical Office pointed out that inflation accelerated again in November, mainly due to the rise in energy prices.
[European Centers for Disease Control and Prevention: The number of infections with the Omikejong variant may exceed Delta within 3 months]
On December 15, local time, the European Center for Disease Control and Prevention released a report that the new coronavirus Semikron variant has spread in communities in Europe. According to the data model, in the first two months of next year, the Aumequeron variant in Europe will be infected with more people than the Delta strain. Although current data suggest that the Opmecreon strain may be similar or slightly less pathogenic to the Delta strain, this strain is more contagious and will still cause a significant increase in hospital admissions and deaths in the coming months.
[IMF warns: global debt level growth has hit a new high after World War II, please think twice before the central bank raises interest rates]
The International Monetary Fund published a study on its official blog on Wednesday warning that the process of monetary policy shifts by central banks around the world could have an impact on the sustainability of the surge in debt during the pandemic. According to the IMF's latest global debt database, the group announced that global debt levels would reach $226 trillion in 2020, a surge of 28% to 256% as a share of GDP, the fastest year of post-World War II debt levels. Today, governments around the world struggle to navigate the challenges of record levels of public/private sector debt, the Opickron variant virus, and high inflation. The IMF also warned that the greater risk is that global interest rates will be raised faster than expected and that economic growth will slow.
[The European-Russian joint exploration project found a large amount of water in the Mars Grand Canyon]
On December 15, local time, the European Space Agency issued an announcement that the Mars exploration project jointly implemented by the agency and the Russian State Space Corporation (Roscosmos) through its trace gas orbiter (TGO) found that there is a large amount of water under the ground in the central area of the Mars Mariner Canyon, which may exist in the form of ice or aqueous minerals. The area of this watery zone is said to be equivalent to the size of the entire Netherlands.