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After two quiet sessions, Wall Street finally got a big day. Fortunately for the bulls, the movement was on the up side. Most news this morning was positive. Starting with the ADP report, it came much stronger than expected for November and also got a huge upward revision for the previous month. Based on its relationship with the non-farm payroll number, the ADP number suggests 200K+ increase in the payroll number. In short, it is a huge relief to those market bears worrying about an imminent recession. The productivity number for the third quarter was also revised up by a big margin, indicating more room for the Fed to cut interest rates. Oil price continued its recent slump after touching $99 after a mixed inventory report this morning. OPEC, without much surprise, didn’t increase production at its latest meeting. Of course, this was the decision on the table. Below the surface; most OPEC nations are quietly increasing their daily production above quota. It is a nice scheme that they have mastered to almost perfection. US dollar got strengthened against most major currencies while gold price dropped. We are going to get interest rate decisions from ECB and BOE overnight. |
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