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Stocks are under pressure following the release of key US economic data, which indicate growth above expectations. US GDP grew by 2.9% in the 3rd quarter (vs 2.7% forecasted). The Core PCE Prix index, which is closely watched by the Fed, was also slightly higher than estimated, coming at 4.6% (vs 4.5% consensus). Elsewhere, oil prices are edging higher as the economic data suggest demand is still holding well.

Stocks are attempting to recover after yesterday's steep losses, led by Apple as traders worried protests in China could weigh on growth and cause further supply-chain bottlenecks. The Nasdaq is recovering with futures contracts up 0.7% in light of increasing signs China is clearing the path towards reopening and continues to boost Covid-19 vaccinations of its population.

The black gold is once again under pressure and falling in value losing around $2 per barrel. This is due to ongoing COVID related restrictions and protests going on in China, which in turn is stifling demand. The WTI is also down trading at USD74.5 per barrel, lower by 2.5%. This is also due to the same reasons with COVID restrictions and concerns about weak demand from the world's largest oil-importing country.

The primary event of the upcoming week will be Thursday's PCE price index and Friday's release of the November employment data for the US, as investors hold out hope that the Federal Reserve would soon halt the rate of rate increases. Mid-week comments from Fed Chair Jerome Powell will be widely scrutinized. Data on inflation in the Eurozone and China's PMI will also be monitored amid worries over a rise in COVID cases there.

Lower US Treasury yields have helped the Nasdaq strengthen lately. In light of the Fed minutes suggesting a softer pace of rate hikes, investors are seeing renewed risk appetite. Nonetheless, inflation data such as next week's favorite inflation gauge the PCE, released on the 1st of December, will be key to confirming the slowing pace of inflation and the trajectory of the Fed cooling down its monetary tightening measures.