1. Another good inflation reading but stocks fall

Stocks had a positive open on Thursday on Wall Street after an inflation measure watched by the Federal Reserve — the PCE — came in a little lighter than expected. “But the market failed to hold those gains as traders showed caution before the important Friday jobs report. The U.S. added 200,000 jobs in November, down from 261,000 in the prior month, according to economists polled by Dow Jones,” CNBC reported. “Traders will be hoping for a jobs number that is just right — weak enough to cause the Fed to slow its rate hikes a bit, but strong enough to stave off recession fears.” Any number below 200,000 jobs created will help stocks but if it tops 200,000, recession fears could spook the market.

2. Upcoming oil price spike?

Sanctions on Russian oil are set to be imposed and could be really disruptive for energy markets if European nations fail to set a cap on prices, analysts warned. “The 27 countries of the European Union agreed in June to ban the purchase of Russian crude oil from Dec. 5,” CNBC reminds us. “In practical terms, the EU — together with the United States, Japan, Canada and the U.K. — want to drastically cut Russia’s oil revenues in a bid to drain the Kremlin’s war chest following its invasion of Ukraine. “However, concerns that a complete ban would send crude prices soaring led the G-7 to consider setting a cap on the amount it will pay for Russian oil.”

3. Is Telstra a Power Play?

The AFR says “Telstra is putting the launch of its retail energy business on the backburner until at least the middle of next year. Chief executive Vicki Brady said it did not make sense to scale up with the “dislocation” between wholesale and retail prices crunching margins and squeezing smaller operators out.”

This was the new strategy under the T25 plan and is seen as putting the telco back into the growth lane. “[Energy] is our ambition, but we have had to put that [on] hold while the markets are in the state they are in,” she said. A final decision on the rollout of Telstra Energy is due “around the end of the financial year in June,” the new CEO Ms Brady explained.

4. Gas caps could KO Investing

This is what the boss of Woodside says will happen if the PM imposes caps on gas prices. “Woodside Energy chief executive Meg O’Neill has doubled down her attack on potential gas price caps on the east coast, describing the proposal – even if only proposed temporarily – as a “black mark” on government because of the changes in the rules,” the AFR reports today. ““One of the things that is important to us is fiscal stability, so if a government changes the rules even for six or 12 months, what it says to us is the government is likely to change the rules again, so it’s a black mark,” she said. It makes us more of a risk to invest in. “In Sydney for an investor briefing, Ms O’Neill warned that Woodside, which after merging with BHP Petroleum supplies about 20% of the east coast’s domestic gas, would have to reconsider proposed investments in new gas developments in the Bass Strait if the proposal went ahead,” the AFR explained.

5. Time to Invest? Will US rally run out of steam?

US analysts at JPMorgan thought stocks could cope with rising interest rates but despite recent rallies, they are still worried that the current rally will run out of steam. “But as the expected peak in short-term US rates rose from 3 to 5 per cent after a hawkish Jackson Hole speech from Fed chair Jerome Powell and an upside surprise to US CPI data, and as hopes of geopolitical de-escalation faded, they abandoned their view of the short-term [more positive] outlook.” The Australian tells us. “Since then, they’ve warned of weakness in markets and economies as a result of central bank “overtightening”. They feel rallies in shares are unsustainable without rate cuts by central banks, and they don’t see that happening without significant economic or market weakness.” I think these guys will be proved wrong but I don’t rule out another pullback for stocks, but if it happens I will buy into any sell-off. The run of inflation data in the US and here is heading in the right direction.