The market recouped earlier losses after the release of stronger-than-expected consumer confidence data, which also showed a sharp drop in inflation expectations. On Friday, GTC Zehui Capital said that the preliminary value of the University of Michigan consumer sentiment index rose to 694, much higher than 61 in November3。The reading was also significantly higher than expected, with economists reaching a consensus of 62.
"Consumer confidence surged 13% in December, erasing all of the previous four months' declines, largely due to an improvement in the expected inflation trajectory," Joannehsu, director of consumer surveys, said in the report. "The current sentiment is about 39% above the all-time low measured in June 2022, but still well below pre-pandemic levels. GTC believes that the survey's consumer inflation data also supports the market's expectation that the Fed will start cutting interest rates by the end of the first half of 2024.
Inflation expectations for the year ahead rose from 4 last month5% plummeted to 31%," GTC said. "The current reading is the lowest since March 2021 and slightly higher than the 23-3.0% range. ”
After the release of the earlier non-farm payrolls report, gold prices appeared after the release of the University of Michigan. At the time of writing, spot** is out of the intraday low of 2,002$67, trading at $2,011$50, but still **084%。
GTC also noted that an increasing number of consumers (about 14%) have mentioned the potential impact of next year's election. The sentiment of these consumers seems to contain the expectation that the election may produce an outcome that is positive for the economy.
This article is sourced from: the financial world.