{"id":44378,"date":"2022-11-10T19:21:03","date_gmt":"2022-11-11T00:21:03","guid":{"rendered":"https:\/\/prefblog.com\/?p=44378"},"modified":"2022-11-10T19:21:03","modified_gmt":"2022-11-11T00:21:03","slug":"november-10-2022","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=44378","title":{"rendered":"November 10, 2022"},"content":{"rendered":"
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TXPR closed at 554.08<\/a>, up 1.04% on the day. Volume today was 1.65-million, well above the median of the past 21 trading days.<\/p>\n

CPD closed at 11.05<\/a>, up 1.00% on the day. Volume was 138,780, second-highest of the past 21 trading days.<\/p>\n

ZPR closed at 9.30<\/a>, up 0.87% on the day. Volume was 563,620, highest of the past 21 trading days and more than double that of the second-highest.<\/p>\n

Five-year Canada yields were down precipitously to 3.34%<\/a> today.<\/p>\n

Equities had an even hotter day<\/a>:<\/p>\n

Investors stampeded back into stocks Thursday, and sent bond yields to their biggest daily decline in more than a decade, after U.S. consumer price data suggested the Federal Reserve may be reaching a turning point in its battle against stubborn inflation.
\n…<\/b>
\nBoth Wall Street and Bay Street saw their biggest advance since April 2020. The S&P 500 jumped 5.5% and the Dow Jones Industrial Average rose just over 1,200 points. The tech-heavy Nasdaq, which is particularly sensitive to the path of interest rates, rallied 7.3%. The Canadian benchmark stock index rose 3.3%, closing at its highest level since Aug. 25.<\/p>\n

Even bitcoin surged, recovering nearly all its losses from Wednesday when a failed buyout for a troubled cryptocurrency exchange sent shockwaves through the sector.
\n…<\/b>
\nFor the next Bank of Canada policy meeting on Dec. 7, the market is now pricing in a 73% probability of a 25-basis-point hike in its overnight rate, versus 54% odds prior to the data, as bets of a larger 50-basis-point hike declined, according to Refinitiv Eikon data.<\/p>\n

The U.S. 10-year Treasury yield dropped about 30 basis points to a five-week low of 3.813%, its largest daily fall since March 2009. Canada\u2019s five-year government bond – influential in the setting of mortgage rates – fell 26 basis points to 3.336%. The U.S. dollar plummeted, sending the Canadian dollar up 1.2% to a seven-week high of 74.79 cents US.<\/p>\n

Lower bond yields and expectations central banks are nearly at the end of their rate-hiking cycle provided a shot of confidence to market bulls who have been arguing the recovery in equity markets is only in its early stages. But most agreed several more months of declining inflation numbers would be needed to confirm the trend.<\/p><\/blockquote>\n

So, yes, there was an encouraging US inflation number<\/a>:<\/p>\n

Consumer Price Index data released on Thursday showed that inflation cooled more than expected in October, welcome news for the Federal Reserve and White House after months of limited progress on bringing down inflation.<\/p>\n

While inflation is still rapid, it slowed notably last month. Consumer prices picked up by 7.7 percent in the year through October, less than the 7.9 percent that analysts had expected, and down from 8.2 percent in the year through September. On a monthly basis, price gains climbed by 0.4 percent between September and October, matching the previous month.<\/p>\n

After stripping out food and fuel, both of which jump around in price, a \u201ccore\u201d inflation index decelerated to 6.3 percent on an annual basis, down from 6.6 percent in the prior reading.
\n…<\/b>
\nMarket expectations for where interest rates will move to next year dropped from a peak of over 5 percent to around 4.9 percent, as investors dialed back expectations of the number of interest rate increases to come.<\/p>\n

The two-year Treasury yield, which is sensitive to changes in Fed policy, plummeted by more than 0.2 percent, to around 4.4 percent. The dollar also fell swiftly, down 1 percent against a basket of currencies that represent America\u2019s major trading partners.
\n…<\/b>
\nFood prices continued to grow in October, inflating grocery bills for American households, though at a slightly slower pace than in previous months. The price of food rose 0.6 percent last month, down from 0.8 percent growth in September.<\/p>\n

While prices of some items have retreated after spiking earlier this year, others are reaching fresh highs. The price of cereals and bakery products climbed 0.8 percent from the previous month, driven by a 2 percent increase in the price of flour. Lunch meats rose 3.4 percent from September and lettuce increased by 3.3 percent. The price of eggs, which have been inflated this year because of an outbreak of avian flu, soared 10.1 percent on the month.<\/p>\n

But the price of some products began to fall after peaking earlier this year. The price of frankfurters fell 2.3 percent. Whole milk fell 0.9 percent, and fresh fruits declined 2.4 percent.<\/p>\n

On an annual basis, the food index rose 10.9 percent, down slightly compared with the pace of growth last month.<\/p><\/blockquote>\n

Some support for the official numbers was provided by the Fed’s Underlying Inflation Gauge<\/a>:<\/p>\n

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