Eurozone PMI surveys are a test for financial markets
Financial markets await Eurozone PMI survey data to decipher possible central bank moves. Monetary policy takes centre stage with the BoJ’s decision to raise rates. In the United States, the rally at the beginning of the year seems likely to continue.
Our intermarket dashboards report no abnormal movements except in the relationship between commodities and the US 30-year yield. The relative strength indicator is outside the volatility band, signalling a strong push in favour of commodities (economic growth and inflation expectations).
On the macroeconomic front it will be an interesting Friday. From Japan the central bank decision has already arrived (an expected hike). Next will come the flash data from the January PMI surveys, which are especially important to understand whether the Eurozone economies are on the road to recovery. Consumer confidence and data on new homes in the US will complete the picture. Overall, the markets most sensitive to today’s news should be Asia and Europe.
Our forecast analysis seems to indicate some difficulties for European and Asian stock markets, while positive momentum continues in the US. Indicators also seem to point to rising yields and falling volatility.
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NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 24 January 2025 - 7:39 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.
