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Daily Outlook: Bank of America stated that the S&P 500's actual earnings yield is at its lowest level since 1947


The Bank of Canada kept interest rates unchanged as expected and fine-tuned the wording to warn of inflation risks:

The Bank of Canada kept the borrowing rate unchanged in its policy decision on Wednesday, but emphasized that the labor market is strong and worried that the continued inflation may keep expectations of an upcoming interest rate hike high. According to a statement issued on Wednesday, the Bank of Canada, under the leadership of Governor Tiff Macklem, maintained its benchmark overnight interest rate unchanged at 0.25% and reiterated that the economy still needs substantial monetary policy support. However, officials no longer say that inflationary pressures are temporary, and point out that recent employment growth is widespread.

Yes, the employment rate has returned to the level before the epidemic.


The number of job vacancies in the United States in October was close to a record high, and the resignation rate fell for the first time since May:

The number of job vacancies in the United States jumped to the second highest level on record in October, highlighting the challenges employers face in filling job vacancies. The U.S. Department of Labor’s survey report on job vacancies and labor mobility released on Wednesday showed that the number of job vacancies rose to 11 million, and the previous month’s data was unexpectedly revised up to 10.6 million. The resignation rate dropped to 2.8%.


The European Central Bank’s Schnabel reiterated its policy guidance: If net debt purchases do not end, there will be no interest rate hikes:

Isabel Schnabel, a member of the European Central Bank’s Executive Committee, reiterated the central bank’s guidance that it will not raise interest rates until the end of net bond purchases. “Switching the order of policy tools for external communication is not an appropriate way to respond to policies,” Schnabel said in a speech in Frankfurt on Wednesday. "Although price stability faces immediate risks, maintaining a large number of asset purchase plans just to avoid long-term yield adjustments will give way to fiscal and financial dominance."


The waiting time for chip delivery is lengthening again, and the shortage phenomenon is expected to be difficult to improve:

The chip delivery time was stretched again in November, extinguishing the hope that the shortage of goods that has suffered losses in many industries will finally see the light. According to research by Susquehanna Financial Group, the watched lead time last month increased by four days from October to approximately 22.3 weeks. This waiting time set the longest record since the company started tracking data in 2017.


Bank of America stated that the S&P 500's actual earnings yield is at its lowest level since 1947:

Bank of America strategists said that the actual earnings yield of the US stock market has fallen to the lowest level since Truman took office as President and the beginning of the Cold War. A strategist led by Savita Subramanian wrote in a report on Wednesday that the S&P 500’s current actual profit margin is -2.9%, which means that if the company’s performance does not continue to grow, investors will lose 2.9% after adjusting for inflation. %. "The last time the actual profit rate was negative was in 1947."


EIA: Last week Cushing crude oil inventories had the largest increase since February:

US Energy Information Administration (EIA) data show that last week Cushing crude oil inventories recorded the largest increase since February, an increase of 2.37 million barrels. This is enough to make the total inventory of this WTI crude oil delivery center exceed the important psychological level of 30 million barrels for the first time in seven weeks. Crude oil imports in the central and western regions jumped to a record high of 3.4 million barrels per day. East Coast crude oil inventories fell by more than 1 million barrels last week, to their lowest level since May.

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