FED minutes weigh on stock markets
The minutes of the latest FED meeting have shattered the calm seen in the financial markets in the first part of the week. US quarterly reports are out, with Walmart’s out today.
Persistent inflation and a healthy economy are prompting the Fed to take a long pause for thought. That is the bottom line from the minutes of the Fed’s latest meeting, released yesterday. Investors are starting to price in the possibility that there will be no rate cuts in 2025. Also weighing on markets are geopolitical uncertainties, which have increased following Trump’s comments, and the announcement by the US Department of Defence that it will cut spending by 8 percentage points.
Our intermarket dashboards show commodities attempting to break out of a long sideways phase, while the medium-term trends for equities and bonds are currently unchanged.
On the macroeconomic front, February’s Philly Fed data is awaited, while in Europe the focus will be on UK retail sales and German producer prices.
Quarterly reports: Today it’s the turn of the big retailers with Walmart.
Our forecast analysis points to another intermediate day, with slightly more negative signals for Europe on the equity front. Gold remains a wait-and-see proposition, while the valuation of the major cryptocurrencies is not improving.
Already a subscriber? Login here
NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 20 February 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.
