Financial markets await the US labour market report
The financial markets continue to be rather erratic this week. The tech sector’s not entirely convincing quarterlies are raising doubts about the profitability of investments in AI. Today is also the day of the US labour market report.
As far as our intermarket dashboards are concerned, we would like to emphasise two aspects today: bonds continue to hover in the dynamic resistance zone and are struggling to overcome this obstacle; correlations between commodities and equities and between commodities and bonds have fallen below their yearly average and are back in negative territory.
On the quarterly front, the day did not feature any major names, and investors will thus have time to continue their considerations on the data released in recent days, particularly as regards the technology sector (yesterday’s disappointment was with Amazon, in previous days the disappointment had been with the accounts of Google and AMD). Given the weight of these stocks on the main stock markets, their performance could affect the base scenario for the day.
On the macro front, the day has already begun, with the Indian central bank’s decision to cut interest rates. But investors’ eyes are fixed on the US labour market data, with new jobs seen slowing but at still strong levels. February’s preliminary estimate of the Michigan confidence index completes the picture.
Our forecast analysis suggests a moderately positive underlying picture for equity markets, both in the US and Europe. Still a buy signal for gold, while the valuation for oil remains negative. Volatility in the normal range. Still negative outlook for major cryptocurrencies.
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NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 7 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.
