Financial markets await news on the US, China and the FED
The financial markets await news on the US-China relations front and begin a week in which the FED will be back in the spotlight with its interest rate decision next Wednesday. A period of stabilisation continues, with bonds maintaining the bullish trend and equities looking to extend the rally.
Our intermarket dashboards show that financial markets continue to stabilise after the April earthquakes. Further confirmation of the bullish trend in bonds, while on the equity front the S&P500 is looking to extend its winning streak. A key point will be a possible bullish cross between the 50 and 200 day averages. Note the rebound in the Dow/gold ratio and the mirror image move in the gold/dollar ratio. Both elements of a moderate return of investor confidence in equities.
On the macroeconomic front, the day will see the ISM services data for April, an important piece in understanding the health of the sector that supports much of US employment.
Our forecast analysis points to a mixed start to the week, with more positive signals on the European front. Positive signals for corporate bonds, although volatility in the sector is expected to rise.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 5 May 2025 - 7:33 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.
