FTX and US Economic Indicators Support BTC Breakout Session
On Thursday, US economic indicators supported riskier assets. Subdued inflation numbers and stable labor market statistics have raised bets for a 25-point rate hike from the Federal Reserve in February. Significantly, the numbers also indicated a softer Fed rate path, which increased the possibility of a soft landing.
Annual US inflation eased from 7.1% to 6.5%, and consumer prices unexpectedly fell in December. Initial jobless claims fell from 206,000 to 205,000 in the week ending January 6th.
In response to the bullish combination, the Nasdaq and the S&P rose 0.64% and 0.34%, respectively.
Investors continued to react further to the latest bankruptcy court news on FTX. Mid-week news of more than $5 billion in cash and cash equivalents and $4.6 billion in non-strategic assets reduced contagion from the FTX crash.
Today, the US economic docket will continue to sway, with consumer confidence numbers and FOMC members’ speech attracting attention. While consumer sentiment will be bullish, the upbeat comments may test appetite for riskier assets.
US corporate results will also be in focus. The bleak outlook will test appetite for riskier assets. JPMorgan Chase (JPM), Citigroup (C), and Bank of America (BAC) will all release earnings results.
The NASDAQ mini index is down 12 points this morning.