4E: A series of data strongly supports the expectation of a "soft landing" of the US economy, and market risk appetite rises
The U.S. Department of Commerce announced on Thursday that retail sales in September exceeded expectations and grew by 0.4% month-on-month, highlighting that U.S. consumer spending remains resilient and continues to provide a strong driving force for the U.S. economy. A series of recent solid economic data has reinforced the market's expectation of a 25 basis point interest rate cut.
According to 4E monitoring, after the data was released, U.S. stocks opened high and fell. The S&P hit an intraday high and then turned down. The Nasdaq also nearly wiped out the gains at the beginning of the session, but the Dow hit an intraday and closing high and rose for two consecutive days. As of the close, the S&P 500 fell 0.02%, the Nasdaq rose 0.04%, and the Dow rose 0.37%; the crypto market fluctuated slightly with the U.S. stock market. As of press time, Bitcoin was at 67,972, up 0.8%, and Ethereum was at 2,632, up 0.43%.
In terms of foreign exchange, positive economic data pushed the US dollar index to an 11-week high, with a cumulative rebound of 3.34% since October. The European Central Bank cut interest rates as expected on Thursday, causing the euro to fall for four consecutive days to an 11-week low. The unexpected decrease in US EIA crude oil inventories last week suggested that demand was robust, causing international oil prices to rise by about 0.40%, ending a four-day decline and breaking away from a two-week low. Spot gold benefited from the uncertainty of the US election and more expectations of monetary policy easing, approaching $2,700 to hit a new record high, and has risen by more than 30% this year.
The data released recently showed that the latest retail sales continued to grow, the non-farm payrolls data exceeded expectations, the unemployment rate was stronger than expected, and the number of initial jobless claims showed a cooling trend in recent weeks. In addition, the US inflation continued to steadily decline and the long-term GDP growth rate was revised upward beyond expectations, providing strong support for the logic of the US economy's "soft landing". At the same time, the global new round of interest rate cuts accelerated, which greatly improved the sentiment of the financial market and investors' risk appetite generally increased. eeee.com is a financial trading platform that supports cryptocurrencies, stock indices, bulk gold, foreign exchange and other assets. It recently launched a USDT stablecoin financial product with an annualized yield of 5.5%, providing investors with a potential hedging option. 4E reminds you to pay attention to market volatility risks and allocate assets reasonably.
