The week continues well in tune with financial markets
There is more positive news and data for the financial markets this week, which seems to be going well. US inflation fell more than expected, and interesting developments seem to be emerging from Trump’s trip to the Middle East. Attention now turns to tomorrow’s data, with the second estimate of Eurozone Q1 2025 GDP and US retail sales.
Our intermarket dashboards indicate that risk appetite is returning to the financial markets. The renewed appetite for risk is particularly evident in the ratio between the S&P 500 and the Nasdaq, which has returned to late March levels, as well as in the ratio between 30-year Treasuries and the S&P 500. Regarding the main US index, crossing of the 50- and 200-day averages is currently confirmed, which could push prices further up. The bullish movement of bonds is slowing down; this remains valid, but is ‘suffering’ from the return of risk appetite.
In terms of macroeconomic data, there was nothing particularly interesting today, although the final German and Spanish inflation figures for April and Japanese producer price data were notable.
Forecast analysis suggests a positive day for equities, while the return of risk seems to be weakening both corporate and government bonds. There are positive signals for the dollar, while gold remains on pause. Further falls in volatility are expected.
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NOTES AND WARNINGS
Data compiled by kbmeter.com. Analysis date: 14 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.
