Rising consumer confidence and FOMC minutes strengthen market sentiment
The American CB Consumer Confidence Index rose from 109.6 in October to 111.7 in November. Rising consumer confidence could indicate higher consumer spending, indicating a robust U.S. economy.
Later in Tuesday’s session, FOMC meeting minutes highlighted balanced risks to inflation and employment targets, suggesting further rate cuts.
However, the minutes showed that the committee was divided. Some committee members discussed the willingness to hold rates steady if inflation remained high. Conversely, others suggested that the Fed could accelerate policy easing if the labor market and economic activity deteriorated.
Despite a divided Fed, FOMC members favored gradual rate cuts.
China’s industrial gains indicate mixed trends
On Wednesday, November 27, industrial profits in China fell 4.3% from January to October compared to the same period in 2023. Industrial profits fell 3.5% year-to-date (Y/Y) in September.
However, losses improved year-on-year in October, falling 10%, compared to 27.1% in September. October’s year-over-year figures contradicted year-to-date figures and provided market relief amid ongoing speculation about US tariffs on China.