Wednesday's Markets Update (December 20, 2023)

21 Dec 2023 by rate3

On Wednesday, major stock indexes rebounded to trade slightly higher, with the Nasdaq 100 reaching a new record high of 16,830. Gains were driven by expectations of Fed rate cuts and better-than-expected economic data on home sales and consumer confidence. Alphabet stock rose on news it plans to reorganize its ad sales unit. BTC and ETH prices jumped but stayed under their yearly highs, shifting technicals to the bullish side, again.

Details

Sales of previously owned homes rose 0.8% month-over-month in November 2023 to 3.82 million units, the first increase in five months. Prices and inventory also increased from last year, with the median home price at $387,600.

30-year fixed mortgage rates fell to 6.83% for the week ending December 15th, the lowest level since June, due to positive inflation news and Fed projections of future rate cuts. Rates have declined since early November as Treasury yields fell on expectations the Fed's tightening campaign is over.

World Economics

The People's Bank of China (PBoC) kept its one-year LPR at 3.45% and the five-year rate at 4.2%, continuing record lows, despite injecting a record CNY 800 billion to aid a sluggish property sector.

Russian MOEX index rose on Wednesday, extending gains for the fourth session, as investors bet on the end of monetary tightening. Electric utilities, metals & mining, and consumer goods sectors led the rally. Gazprom projected its 2023 EBITDA to reach 2.2 trillion rubles, improving its debt-to-EBITDA ratio.