Economic Indicators - November's inflation rate was reported at 2.7%, lower than the expected 3.1% [1] - The "Core" CPI, excluding food and energy prices, increased by only 2.6%, also below the predicted 3% [1] Market Reactions - Investors reacted positively to the inflation report, with the Vanguard S&P 500 ETF (NYSEMKT: VOO) rising by 0.8% in premarket trading [2] - A cooler inflation report increases the likelihood of an interest rate cut by the Federal Reserve in January, which is generally favorable for the stock market [4] Company Earnings - Micron (Nasdaq: MU) reported earnings of $4.78 per share for fiscal Q1 2026, exceeding expectations by 84 cents, with sales of $13.6 billion [5] - Micron's guidance for Q2 suggests earnings could reach $8.42 per share, significantly above the consensus forecast of $4.49, with projected sales of $18.7 billion [5] - Cintas (Nasdaq: CTAS) reported earnings of $1.21 per share for fiscal Q2, slightly beating revenue projections with sales of $2.8 billion [6] - Cintas forecasts full-year profit between $4.81 and $4.88 per share, although sales may be slightly lower than expected at around $11.1 billion [6]

Core Viewpoint - The Bank of England decided to cut interest rates by 25 basis points to 3.75% with a narrow majority vote, indicating a shift in monetary policy amid lower-than-expected inflation data [1] Group 1: Interest Rate Decision - The decision to lower the interest rate was supported by five members of the committee, while four members preferred to maintain the current rate [1] - Analysts had anticipated that more members would support the rate cut following the release of UK inflation data that fell below expectations [1] Group 2: Market Reaction - Following the announcement of the interest rate decision, the yield on UK 10-year government bonds increased by 4 basis points, rising from 4.449% to 4.494% [1]

A view of London’s financial district. - Chris J. Ratcliffe/Bloomberg News The Bank of England cut its key interest rate Thursday while the European Central Bank held steady, as a period of more stable borrowing costs sets in across the continent. Why the BOE cut The U.K.’s central bank reduced its key rate to a near three-year low of 3.75% from 4%, resuming a series of cuts that stretch back to August 2024 after a pause in November. Most Read from The Wall Street Journal The BOE indicated that borrow ...

Core Viewpoint - The Bank of England has cut its key interest rate for the first time in four months to 3.75% as inflation begins to ease, providing an opportunity to stimulate the stagnant economy [1][3]. Economic Indicators - Consumer price inflation in the UK slowed to 3.2% in the 12 months through November, down from 3.6% the previous month, and below the Bank of England's forecast of 3.4% [2][3]. - The unemployment rate has risen to 5.1%, the highest since January 2021, indicating a weakening job market with declining job vacancies [3][4]. Monetary Policy - The decision to cut interest rates was made by a narrow vote of 5-4 among policymakers, reflecting a division in focus between combating inflation and supporting economic growth [1][4]. - The inflation rate in the UK remains significantly higher than the Bank of England's target of 2%, with UK consumer prices rising faster than in other regions, such as the Eurozone (2.1%) and the U.S. (3.0%) [5]. Economic Growth Considerations - Lower interest rates are intended to stimulate economic growth by reducing borrowing costs, which can lead to increased consumer spending and business investment, although this may also contribute to higher prices [5][6]. - Central bankers face the challenge of balancing the need to control inflation while not hindering economic growth [6].

Core Viewpoint - The U.S. Federal Reserve has the capacity to lower interest rates due to increasing weakness in the job market [1] Group 1 - Federal Reserve Governor Christopher Waller highlighted the potential for interest rate cuts in response to labor market conditions [1]

The Federal Reserve cut its benchmark interest rate last week, and just as happened the last two times, mortgage rates rose. That caused demand for home loans and refinances to drop.Total mortgage application volume fell 3.8% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, 806,500 or less, increased to 6.38% from 6.33%, with points increasin ...

Market Performance - Hong Kong stocks rebounded from a three-week low, with the Hang Seng Index rising 0.9% to 25,468.78, while the Hang Seng Tech Index gained 1% [1] - The CSI 300 Index on the mainland climbed 1.8%, and the Shanghai Composite Index added 1.2% [1] Company Movements - China Life Insurance increased by 4.3% to HK$28.56, and Li Ning also rose by 4.3% to HK$19.07 [3] - Pop Mart International Group saw a gain of 3.4% to HK$195.70 [3] - ENN Energy declined by 2.4% to HK$69.90, and Techtronic Industries retreated by 2% to HK$89.80 [3] Economic Indicators - The US added 64,000 jobs in November, improving from a loss of 105,000 jobs in the previous month, but the unemployment rate rose to 4.56% from 4.44% in September [5] - Analysts suggest that the US jobs market is cooling but on track for a soft landing, indicating limited urgency for the Federal Reserve to cut interest rates in January [5] - Investors are looking forward to the November US inflation data, with core consumer prices expected to rise by 2.9% year-on-year, down from a 3.02% increase in September [6]

Federal Reserve Bank of Boston President Susan Collins said Monday a changing inflation outlook tilted her toward supporting last week's central bank interest rate cut. ...

Mortgage rates remain in a comfortable routine. According to Zillow data, the 30-year fixed mortgage rate is 6.13%, and the 15-year fixed rate is 5.53%. The Federal Reserve announced a third interest rate cut last week, and mortgage rates shrugged. The 30-year interest rate has barely moved since the end of October. Current mortgage rates Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.13% 20-year fixed: 6.08% 15-year fixed: 5.53% 5/1 ARM: 6.24% 7/1 ARM: ...

Group 1 - The Home Depot, Inc. is highlighted as a stock that is significantly undervalued, with Jim Cramer suggesting it is 100 points below its potential value [1] - Cramer noted that Home Depot's performance has been affected by high interest rates, but a potential Fed rate cut could improve the stock's outlook [1][2] - Home Depot is identified as particularly sensitive to interest rate changes, with the upcoming Fed meeting being a critical factor for its stock performance [2] Group 2 - The company operates as a home improvement retailer, offering tools, building materials, decor, installation, and equipment rental services [2] - Despite the potential of Home Depot, there are suggestions that certain AI stocks may present greater upside potential and lower downside risk [2]