Forex Analysis & Reviews: 12.01.2022 - US premarket for January 12:...

Live Chat

InstaForex Loprais Team - Official participant of the Dakar rally

This section features the most important information about trading with InstaForex. We provide both analysis from leading experts for experienced traders and articles on trading conditions for beginners. Our services will help increase your profit potential.

Become Trader

Account Opening

See also

Trading Conditions

Forex Analytics

Charts

This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.

Start as Beginner

How to start trading

Useful information

Training and recordings

InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.

Become Investor

PAMM System

ForexCopy System

Passive investments

OYS account

Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.

Become Partner

Main Page

Partner Area

Advantages for Affiliates

Registration

This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.

All Promo Campaigns

Bonuses

Contests

Events

Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.

Full details

Forums

We are in social networks

Forex humour

Forex Portal

InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.

Learn More

History

Why Choose Us

InstaSport

Regulation

Company News

Awards

InstaForex Stars

InstaForex Offline

Headquarters

Key documents

Social Responsibility

InstaForex - Official partner of Dragon Racing

12.01.2022 02:07 PM

US premarket for January 12: December inflation in the US will not be a problem for the US stock market

Futures on US stock indices rose slightly on Wednesday, as investors are counting on a less aggressive report on US inflation, although prices are expected to rise at the fastest pace in almost 40 years. Dow Jones Industrial Average futures gained 46 points, while S&P 500 futures rose 0.1%. Nasdaq 100 jumped 0.2%.

As noted above, the entire focus of traders during American trading will be on what data on the consumer price index for December of this year will be released. Economists expect CPI to grow by 7% compared to last year – the highest since the summer of 1982, and by 0.4% compared to November - this will be evidence of a slowdown in growth after a jump of 0.8%. The base index excluding food and energy is projected at 5.4% and 0.5%, respectively.

Some economists believe that inflation may show its peak value, after which its gradual decline will begin. For this reason, many will carefully consider this report for longer-term guidance in their strategies.

Yesterday, Fed Chairman Jerome Powell told Senate lawmakers that he expects interest rates to rise this year along with the end of the monthly bond purchase program in March and the reduction of the Fed's balance sheet. Powell noted that these steps will be required to regain control over inflation, but such actions do not pose a threat to the economy - it has already largely recovered from the shock caused by the coronavirus pandemic and its various waves. Powell also did not talk about how many interest rate hikes there will be this year.

The reaction of stock markets was lightning fast, as concerns related to the recent hawkish tilt of the Fed and the prospect of a more aggressive rate hike calmed down a bit, forcing investors to look at the cheaper assets.

Bond yields, which rose sharply in early 2022, also stabilized on Tuesday, with the yield on 10-year Treasury bonds falling to 1.76% after exceeding the 1.8% level earlier this week.

At the end of this week, major banks will begin the reporting season for the fourth quarter of 2021, so market volatility should remain at an acceptable level. JPMorgan Chase, Citigroup, and Wells Fargo will report. Quarterly results will be published before the market opens.

As for the premarket, Dish Network's securities are showing a satisfying large growth today, which jumped by 7.4% after the news that the company is again negotiating a merger with DirectTV. Norwegian Cruise Lines shares rose 1.9%, while Hilton Worldwide Holdings' shares rose 1.2%.

Tesla securities at the moment added 0.5% and traded at 1070, after which they rolled down a little. Apple is also trading in a small plus 0.5% after yesterday's growth of 1.68% following the results of the regular session.

As for the technical picture of the S&P 500

Yesterday, the bulls returned the level of $ 4,665 and aimed for a more active recovery above $ 4,722. Only going beyond this range will return bullish momentum, which will lead the trading instrument to a larger resistance of $4,772 and open up an opportunity to upgrade to $ 4,818. With a repeated downward movement and a breakdown of $4,665, the S&P 500 will fall to the area of $ 4,598 and $ 4,551.

You have already liked this post today

*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.