The FED’s preferred inflation gauge (the PCE – Personal Consumption Expenditure ) came in at 6.2% YoY on Friday, in-line with the previous PCE reading. Core PCE came in higher than the previous month, at 5.1%, just shy of expectations.
Personal income grew 0.4% in October, while personal spending grew 0.6%. Both grew more than expected, suggesting that people are spending more money while earnings less money.
This, in combination with the news from yesterday, as well as a miss on earnings from large tech companies, pushed investors away from stocks, and commodities in Friday’s early-morning trading.
- Gold: -1.5%
- Silver: -2%
- Copper: -2.5%
- Oil: –1%
- Russia didn’t hike interest rates today, and kept them at 7.5%, because of which the Rouble strengthened.
- Japan didn’t hike interest rates today, and kept them at -0.1%, though they raised their inflation expectations to 2.9% for FY 2022.
- Germany’s Q3 GDP outgrew expectations, and game in at 1.1%, while its CPI came in higher than expected, and hit a new all-time high at 10.4%.
- EU Consumer Confidence for October remained negative, at -27.6, the lowest since 2020.
- Big oil companies Chevron, and Exxon Mobil reported better earnings than expected, while Amazon totally flunked its numbers in Q3, and is down over 12% in premarket trading.