S&P 500 page 2

Credit ratings help investors categorize issuers of stocks, bonds, or entire nations by their level of debt risk. Depending on the level of credit rating assigned, you can understand the level of credit risk. Ratings are issued by rating agencies that have different rating systems. One such agency is Standard & Poor's. Today we will learn more about it, including its importance for investors and traders.

Key events:         USA – Core PCE Price Index (MoM) (Jan) USA – New Home Sales (Jan) The latest GDP data from the U.S. showed that the U.S. economy grew 2.7% in Q4, not 2.9% as analysts had anticipated. Softer economic growth might have helped ease inflation and softened the Fed's hand. That didn't happen, however, as the GDP Price Index, another measure of inflation that was released along with the GDP data, showed that inflation fell in Q4, but fell much less than expected, fully reflecting the CPI and PPI data released last week.

Key events:         New Zealand – RBNZ Interest Rate Decision New Zealand – RBNZ Rate Statement      New Zealand – RBNZ Press Conference      USA – FOMC Meeting Minutes   First of all, there are enough reasons for optimism in the market, and each of them is quite convincing. China is lifting the quarantine measures imposed because of the coronavirus. This leads to improvements in supply chains and reduces pro-inflation risks.

Key events:      

Key events: UK - Composite PMI (Nov)   UK - Services PMI (Nov)   USA - ISM Non-Manufacturing PMI (Nov)  

Key events: USA – Nonfarm Payrolls (Nov)   USA – Unemployment Rate (Nov)   Canada – Employment Change (Nov) European markets got off to a moderately positive start to the month, hitting 6-month highs, but then pulled back by the close, with the FTSE100 lagging behind, failing to break out the 7,600 level.

Key events: UK – GDP (MoM) UK – GDP (YoY) (Q3)  UK – GDP (QoQ) (Q3)   UK – Manufacturing Production (MoM) (Sep) UK – Monthly GDP 3M/3M Change   U.S. stock indices rose strongly in the first half of trading Thursday. A positive driver was the inflation data. In addition, the reporting season is nearing its end. According to the congressional election results, the Republicans are in the majority and this threatens with difficulties to coordinate the bills with the White House – Joe Biden is a Democrat.

Key events: USA – Core CPI (MoM) (Oct)   USA – CPI (YoY) (Oct)   USA – CPI (MoM) (Oct)   USA – Initial Jobless Claims The U.S. stock market rebounded strongly in October, with the S&P 500 index surging 8.8%. November started slightly less well, with the key U.S. index down 1.68% in the first five trading sessions. Nonetheless, it is obvious now that the large-scale sell-off seen in the stock market during the first nine months of 2022 has stopped, at least for the time being.

Key events:   UK - Composite PMI (Oct)   UK - Services PMI (Oct) UK - BoE Interest Rate Decision (Nov) UK - BoE Gov Bailey Speaks      USA - Initial Jobless Claims   USA - ISM Non-Manufacturing PMI (Oct) UK - BoE Gov Bailey Speaks    

Key events: Eurozone - EU Leaders Summit USA - Initial Jobless Claims USA - Philadelphia Fed Manufacturing Index (Oct) USA - Existing Home Sales (Sep)     A Fed rate hike to levels above 4% will have a negative impact on the construction sector, real estate prices, and ultimately aggregate demand. U.S. companies will stop hiring and layoffs to cope with revenue pressures from both the strong dollar and falling demand in Europe as a result of the energy crisis, which will lead to higher unemployment in the U.S.