Investors await the Fed for clues on the future of the US economy
Another bad day for US equity markets, while Europe and Asia remain bullish. Investors await the FED meeting for clues on the future of the US economy. Gold continues its run, bonds take a wait-and-see approach, but the short-term bullish trend remains valid.
Our intermarket dashboards continue to signal a period of uncertainty for risk assets. Few new developments of note. Of note is the continuation of the strong phase for gold (whose ratio to the dollar has reached its highest level since the beginning of the year) and the new acceleration in the ratio of the S&P 500 to the Nasdaq, suggesting that technology is currently the weakest link in the chain. Signs of a recovery in US equities were offset by another negative day for technology stocks. The S&P 500 remains below its 50-day moving average. The 200-day average remains the main tool for understanding how the main US stock market will perform in the coming months. The bond market remains on hold for now, but the short-term bullish trend remains intact.
On the macroeconomic front, the focus will be on the Fed’s decisions, but there will also be interesting data from Japan (exports and industrial production) and the Eurozone (wage growth at the end of 2024).
Our forecast analyses continue to indicate a stalemate. For US equities the baseline scenario remains negative, while positive signals are coming from Europe and Asia. As far as commodities are concerned, there are still positive signals for metals, while on the currency front there are confirmations for sterling and the Swiss franc. Waiting situation on the bond front. Volatility is essentially stable.
Already a subscriber? Login here
NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 19 March 2025 - 7:17 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.
