Financial Markets Today-Budrigantrade review
2023.02.14 02:31
Financial Markets Today-Budrigantrade review
By Kristina Sobol
Budrigannews.com – Budrigantrade provides a look ahead to the day for European and global markets.
On Valentine’s Day, the inflation numbers from the world’s largest economy will be one of the most closely watched economic data by markets.
While blockbuster January occupations information has constrained some market members to hesitantly acknowledge that the pinnacle isn’t yet close for loan costs, financial backers are as yet confident that the Central bank could start cutting rates not long from now.
Kevin Muir, an independent proprietary trader based in Toronto, stated: I don’t know if it will be this release or the next one, but I think the market has been a little too eager to accept the return to inflation normalcy.”
“It appears that there is little concern regarding the issue of persistent inflation. Although a few experts have issued warnings about inflation, the market is clearly proclaiming loud and clear that concerns about inflation are unfounded.”
Despite Fed Chair Jerome Powell’s acknowledgement last week that rates may need to move higher than expected if that kind of economic strength threatens the Fed’s progress in lowering inflation, the market anticipates that rate increases will ease.
According to Reuters polls of economists, headline prices and the core CPI are expected to rise 0.5% and 0.4% month-over-month for January, respectively, in Tuesday’s CPI reading. On the other hand, on Monday, some people adjusted their expectations for a slightly lower CPI.
On Tuesday, Asian shares gained a little bit while the yen recovered losses as Japan appointed a new governor of the central bank.
U.S. Secretary of State Antony Blinken is said to be considering meeting top Chinese diplomat Wang Yi at this week’s Munich Security Conference, according to sources.
After the United States shot down what it claimed was a Chinese spy balloon and other flying objects, this would be their first face-to-face conversation.
In the meantime, the asset freeze that covers the UK is easing.
Britain’s stocks and bonds are attracting a lot of interest from investors after the upheaval of last year. The stock index is nearing record highs as the bourse gains from global trends like the reopening of China’s economy and high energy prices.
One of the largest declines in government financing rates among the Group of Seven most advanced economies has occurred in ten-year government bond yields, which have dropped 27 basis points so far in 2023 to 3.4%.
According to a poll conducted by Reuters and released on Tuesday, the Bank of England will raise borrowing costs for the last time this cycle next month in order to combat double-digit inflation while the economy almost certainly enters a recession.
The right’s hold on power was strengthened in Italy when Prime Minister Giorgia Meloni and her coalition partners won overwhelmingly in the two wealthiest regions of the country.
Bloomberg reported that Qatari investors are preparing to bid on Manchester United’s purchase in the coming days.
Important developments that may have an impact on markets on Tuesday:
Data on the economy of Europe: Flash Q4 GDP, December jobs, and January unemployment count.
U.S. CPI data are due: CPI-core CPI forecast for January: +0.4%, up from +0.3% in December, and +5.5% year-over-year from +5.7%