The main thing in global financial markets today
2023.01.10 01:21
The main thing in global financial markets today
By Tiffany Smith
Budrigannews.com – Bulls are excited about this year’s strong equity market start, but markets know it’s best to behave before Federal Reserve Chair Jerome Powell speaks.
Even as Asian tourism-focused businesses prepared for a return of Chinese tourists following the country’s borders reopening on Monday, Asian stocks edged lower on Tuesday after recent gains.
European futures point to a weaker opening for stocks, which are trading at eight-month highs on rising expectations that the euro area will only experience a shallow recession and will overcome concerns about a sharp slowdown.
A decrease in headline inflation in the region suggests that price pressures will lessen.
Fed Chairman Powell is scheduled to deliver a speech later on Tuesday that could provide additional clarity regarding the rate of rate hikes, and Thursday’s release of inflation data in the United States will further bolster expectations.
Inflation data and Fed speakers will determine market action, and money markets are pricing in a 25% chance of a half-point U.S. rate hike in February, down from around 50% a month ago.
In a sign of growing inflationary pressure, consumer inflation in Japan exceeded the target of 2% for the seventh month in a row.
In the meantime, the French must prepare to work longer hours than they currently do.
The pension reform that will be unveiled by French Prime Minister Elisabeth Borne will be a significant test of President Emmanuel Macron’s ability to bring about change. The reform already has unions and a large majority of voters in disapproval.
In addition, Qatar Sports Investments is reportedly interested in acquiring English Premier League clubs Manchester United Plc, Tottenham Hotspur, or Liverpool FC, according to Bloomberg News.
Important developments that may have an impact on markets on Tuesday:
More Brazilian Real weakens due to unrest
Speakers: At 1630 GMT, Mario Centeno, a member of the ECB’s Governing Council and governor of the Bank of Portugal, addresses lawmakers. At 1010 GMT, Isabel Schnabel, a member of the ECB’s board, delivers a speech. Prior to the Sveriges Riksbank International Symposium on Central Bank Independence, Federal Reserve Chair Jerome Powell participates in a panel discussion.
