Financial markets comforted by US/China meeting announcement and waiting for FED
Investors are trying to start Wednesday with some optimism. On the one hand comes the announcement of an upcoming meeting between the US and China on the tariff issue, on the other there are comforting words from the FED (but no cuts). However, the situation remains very uncertain, with the main stock indices improving technical signals but still weak in direction.
Our intermarket dashboards confirm the normalisation phase in financial markets, with some volatility in the gold-dollar and Dow-gold strength ratios. The S&P500 to VIX ratio is returning to its annual average. Meanwhile, the S&P500 continues to slowly approach the cross of the averages, a technical element that could support further gains. The bullish trend in global bonds continues, while commodities seem to be confirming their sideways trend.
On the macroeconomic front, the day will be marked by the Fed’s decision on interest rates. No one expects a cut, but Powell’s words on relations with the Trump administration and the state of the economy will be important. Eurozone retail sales data for March will also be released.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 7 May 2025 - 7:54 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.
