Budrigantrade review-main news about happening in the world
2023.02.06 02:15
Budrigantrade review-main news about happening in the world
By Kristina Sobol
Budrigannews.com – The European Central Bank and the Federal Reserve raised interest rates as anticipated last week, indicating that credit conditions would remain as tight as necessary to control inflation.
Still, as markets priced in lower rates, stocks rose and bond yields fell. January was one of the best ever for both asset classes.
Now, it appears as though some of these hopes were empty speculation.
And just as a suspected Chinese spy balloon was shot down by a U.S. military fighter jet, the market’s hopes that the Fed was close to stopping its monetary policy tightening cycle were dashed by Friday’s record-breaking jobs growth data.
Futures are almost all priced in for a quarter-point rate increase in March and possibly another in May. This puts the peak at 5.0%, up from 4.9% prior to the jobs data.
The unemployment rate in the United States fell to 3.4%, more than a 53-1/2-year low, according to jobs data.
Asian equity markets fell 1.9% on Monday, heading for their worst day in three months as investors considered U.S. rate hikes. After its recent poor performance, the safe-haven dollar increased.
Futures on U.S. stocks were lower, and those on British stocks, which hit a record high on Friday, suggested a weaker start. The European index futures also fell in trading.
Ignazio Visco, a member of the ECB Governing Council who is also the governor of the Bank of Italy, stated on Saturday that the ECB could take a cautious approach to increasing interest rates because longer-term inflation expectations remained under control and short-term inflation expectations had sharply decreased.
The European Central Bank (ECB) said last week that it would make a similar move in March and raised its key rate by 50 basis points to 2.5 percent.
Investors will pay attention to BP (NYSE:), among others,’s results this week. Unilever, Inc. as well as banks like BNP Paribas (OTC:), The Societe Generale and Credit Suisse, a troubled bank.
In an escalating pay dispute with the government, tens of thousands of nurses and ambulance workers were scheduled to walk out on Monday in Britain, causing further disruption to an already strained health system.
The largest walkout in the National Health Service’s 75-year history will take place, primarily in England.
Beyonce broke a record at the Grammy Awards, but it was a happy one. On Sunday, she won her fourth Grammy and was in the running for another, including the prestigious award for best album.
Important developments that may have an impact on markets on Monday:
Monetary data: February sentix survey, December retail sales; Last global PMI for January; German Dec. orders for industry.
