Investors looking for direction
Financial markets continue to search for direction. After Powell’s words, the US inflation data for January will arrive today. In the background still tariffs, still Trump and an indecipherable geopolitical picture.
In yesterday’s hearing, J Powell reiterated the central bank’s willingness to act cautiously and calmly on the interest rate front. The economy is doing well, the labour market is solid, and inflation continues its return to target. Ergo, the current level of rates is appropriate and whether mortgage rates still remain high depends on the market and not on the Fed.
On the macroeconomic front, today is US inflation day for January, the expectation is for a slowdown, but Powell’s words could limit the markets’ reaction to a better than expected figure.
Our forecast analysis points to another interlocutory day for equity markets (slightly more positive on the European front). Bond yields recovering slightly. Volatility broadly stable. Waiting situation for major cryptocurrencies.
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NOTES AND WARNINGS
Analysis automatically generated by kbmeter.com. Analysis date: 12 February 2025 - 8:39 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.
