Wall Street fell on concern over economic data

It should be remembered that the indices began the day with a decline, after the wholesale price data in the United States, which rose 0.3% in one month, above the 0.2% expected by analysts. That generated a moderate rise towards the afternoon, but, At the close it was reflected that investors are still concerned and that resulted in a fall in the titles on Wall Street.

Investors evaluate a number of mixed economic data and analyze the possibility of the US Federal Reserve opting for a rate hike of 50 basis points at its policy meeting next week.

And it is that Bill Northey, of US Bank Wealth Management, affirmed that this report “should not change the trajectory of the US Federal Reserve (FED) next week”, with a rate hike expected by the market of half a percentage point on Wednesday. The market is convinced that the Fed “should continue to raise its policy rate” in 2023, Northey said, something that hurts equity markets.

Wall Street: The mixed data that the market analyzes

This interpretation is combined with the fact that consumer confidence improved in December, while the expectations of inflation fell to 15-month lows, according to a University of Michigan survey.

These elements make the market consider that the Federal Reserve will increase its interest rate official by 50 basis points, up to 4.25%-4.50%, next week. “The focus will be on where the Fed stops its interest rate cap cycle,” said Brian Klimke, director of investment research at Cetera Financial Group. And he explained that if we see a recessionary trend, we could see a reversal and even interest rate cuts later next year.

Consequently, the present is a moment of “wait and see” for the market because next Tuesday the price inflation data for November will finally be released and that index will provide new clues about the US central bank’s monetary tightening plans.

And it is that, although investors had boosted the index after interpreting data that showed an increase in the applications for unemployment benefits in the United States as a sign that the pace of the interest rate hikes could decrease soon, this Friday it is expected that the inflation indicator will be higher than expected in the United States.

The expectation is based on the fact that, although the inflation data will only be known next week, the Department of Labor reported that the wholesale prices they rose 0.3% in November over October, slightly more than expected by economists.

Prices “continue to rise at a pace that is well above target,” says Rubeela Farooqi of High Frequency Economics in an analysis note. But with the production costswhich appear to have peaked, some see the data as supporting smaller interest rate hikes by the Federal Reserve, which is due to meet next week.

Argentine shares listed on Wall Street

The shares of Argentine companies listed in New York, while they operated with a majority of losses this Friday, on a day in which in our country there was no financial or stock market activity because it was a bridge holiday. A reversal of the trend was also observed with respect to the opening of the day. This is related to the fact that the better outlook for the US market worsens the outlook for emerging market assets.

Thus, there were declines in some ADRs, such as BBVA (-1.42%), Transportadora del Gas del Sur (-4.7%), Edenor (-0.7%) and Telecom (-3, 47%).

Only IRSA’s ADR rose, with an increase of 0.87%. The shares of MercadoLibre also show a recovery of 1.38%. The rest of the assets of national origin are in the red for the moment.

Sovereign bonds that are traded abroad traded with slight increases.