It promises to be a complicated Monday. Moody’s downgrade of US debt is weighing on the financial markets
This Monday is likely to be a bad day for equities, with investors having to “digest” Moody’s downgrade of US debt. There is also uncertainty for European equities, while bond yields are expected to rise.
The risk-on scenario that has emerged in recent weeks is likely to pause on the news of Moody’s downgrade of US debt. Although risk appetite indicators are above the one-year average to start the week, this Monday could be tricky. Bonds are trying to maintain the bullish trend, while commodities are moving sideways.
In terms of macroeconomics, there were no major developments today. However, new data on the Chinese economy and the final revision of Eurozone inflation for April were released.
Our forecast analysis confirms a positive fundamental outlook, but Moody’s downgrade of the US changes the scenario. US futures point to a downward opening. There is also uncertainty in Europe. Regarding bonds, the outlook remains for an increase in yields. Considering the latest news, volatility is on the rise.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 19 May 2025 - 7:31 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.
