Goodbye, 2022; Here's What You Should Know Today

By: Miguel A. Rodriguez

11:19, 30 December 2022

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Things will probably continue as they have on Friday, the year's last trading day. Despite yesterday's amazing market recovery, there will be no important economic data. 

Global financial markets are seeing some price movement following the Christmas holidays. Global stock indices rose on Thursday as investors assessed the state of the US economy and the implications of China's reopening for global growth and inflation. After a significant drop the day before, they made up all of the lost ground yesterday, with most indices gaining more than 1.5%. 


Unemployment claims in the United States were slightly higher than expected on Thursday. Nonfarm payrolls, an important statistic, will be released at the end of next week. An increase in the unemployment rate typically weighs on the stock market. 


In 2022's final days, investors are also thinking about what the end of China's zero COVID policy means for markets. On the one hand, the resumption of travel into and out of China may benefit the global economy as growth slows, but some are concerned that increased demand may raise travel prices again. In order to fight inflation, energy and other raw materials would force central banks to raise interest rates above what the market is currently offering. However, if Covid-19 spreads in China, it may slow production and disrupt supply chains. 


Therefore, many variables that are difficult or impossible to predict have been reflected in market performance recently, with no clear direction and a high level of volatility. A lack of trading volume and less money in the market are also having an impact on the final days of 2022. As a result, the market moves more erratically and relies less on fundamental factors. 


On Friday, the last trading day of the year, things will likely go the same way as they have the last few days. There won't be any important economic data, even though yesterday's amazing recovery of the markets points to another good day for the major indices. 


The S&P500 index has managed to stay above the 3,800 support level for the past week, indicating further gains towards the 3,940 and 3,980 levels. 

Sources: Bloomberg, Reuters 

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.