Financial markets are opening more weakly as scenes from the unrest in China are renewing concerns about global economic growth. Most notably, U.S. oil prices are hitting the lowest levels since mid-January over fears of slowing global demand.1
Investors this week will also be focusing on Federal Reserve (Fed) Chair Jerome Powell’s speech on Wednesday at the Brookings Institution. The speech will be focused on labor market conditions in the U.S., which continue to exhibit strength despite the Fed’s aggressive monetary tightening. Chair Powell is unlikely to waver from his inflation-fighting messaging after failing to understand the scope of the problem last year.
The Fed will get more important employment data this week with the Job Openings and Labor Turnover Survey (JOLTS) release on Wednesday and the November employment report on Friday. Fed policymakers will be looking for signs that the labor market supply-and-demand imbalances are beginning to normalize.
1Source: CNN Business- US oil prices hit lowest level in nearly a year. Gas is down 6% in a month; 11/28/22
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