US indices
US indices rebounded on Thursday, following the sudden drop in the final hours of the previous session. Inflation once again takes centre stage.
Japanese CPI growth
In Japan, headline consumer price index (CPI) growth fell to 2.8% in November from 3.3% in October. The core consumer price index, which excludes fresh food, rose 2.5% in November year-over-year (YoY), matching market forecasts and slowing from a 2.9% gain in October. It was the slowest increase since a 2.4% growth in July 2022.
Bank of Japan
CPI ex-food and energy, the so-called core consumer price index (CPI), the Bank of Japan (BOJ) -favoured reading, came in at 3.8%, down from % the previous month. This latest set of data eases the pressure on the BOJ and may give the central bank more time before phasing out its massive monetary stimulus. More inflation data is also expected in the US. The core personal consumption expenditures price index (PCE) is expected to rise by 0.2% in the November month-over-month (MOM).
UK retail sales
In the UK, retail sales for November came in slightly better than forecasts. The ONS reported that UK retail sales volumes rose by 1.3% in November 2023. That follows no growth in October (revised from a fall of 0.3%). The final reading of Q3 shows the UK economy is on the brink of recession. It shrank by 0.1% from the previous quarter. The downgrade is because the UK services sector is now estimated to have fallen by 0.2% in the third quarter of 2023, revised down from a first estimate fall of 0.1%.
Nike
Sportswear manufacturer Nike saw shares down 11% after the bell last night after a disappointing revenue forecast. Earnings in the second quarter came in at $1.03 per share, $0.19 better than the analyst estimate of $0.84. Revenue for the quarter came in at $13.4 billion, versus the consensus estimate of $13.39 billion. Nike also unveiled plans to cut costs by about $2 billion over the next three years as it warned about a “softer” revenue outlook for the second half of the year.
Oil
Oil prices are set to post a second straight week of gains as global trade is still disrupted through the Suez Canal, which handles about 12% of worldwide trade. Oil traders also await the latest Baker Hughes data. Last Friday, the total rig count fell by three to 623. The number of oil rigs in operation fell to 501 from 503.
