Deadlocked situation on financial markets
In the absence of relevant macroeconomic data, it seems that financial markets have lost direction again. Investors are starting to question whether trade agreements can genuinely prevent an economic slowdown, or if the recent optimism has been exaggerated.
he situation in the financial markets appears to have stalled. Progress on the tariffs front has provided less of a boost than expected, due to renewed fears about the growth outlook and US debt management. While the situation remains stable for the three main asset classes, our intermarket dashboards show compression in key risk indicators.
In terms of macroeconomics, the Australian and Chinese central banks will announce their rate decisions, and the Eurozone will release German PPI data, the flash consumer confidence figure for May, and the first estimate of labour cost trends in Q1 2025. Finally, April inflation data are expected from Canada.
Our forecast analysis indicates that it will be an uncertain day for the financial markets, with few positive signals for equities and many wait-and-see situations. Long yields on bonds are still rising, while the outlook for European corporate bonds is positive. Precious metals are still struggling and volatility is seen to be declining slightly.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 20 May 2025 - 7:26 AM GMT+1
This content is provided for informational purposes only and should not be considered financial advice. All scores and assessments are based on the previous trading day’s closing prices. Futures indications refer to the date and time of the analysis.
