Investors Await US Inflation Data; US Stocks Rise
On Monday, Wall Street stocks rose as investors awaited the release of key US inflation data that will likely influence Federal Reserve policy makers when they set interest rates this week. The latest reports show that Wall Street’s benchmark index, the S&P 500, rose 0.3%, consolidating its move into bull market territory last week, while the tech-heavy Nasdaq Composite gained 0.2%. This was buoyed by bets that the Federal Reserve will resist raising interest rates when it meets on Tuesday and Wednesday, marking the first break in the central bank’s 14-month campaign to tame inflation.
Stocks buoyed by the Federal Reserve’s expected non-intervention
Since there have been signs that the economy is dragging into a recession, it is expected that Fed policymakers will keep rates on hold. Susannah Streeter, head of money and markets at Hargreaves Lansdown, said, “With signs that the economy is dragging into a potential recession, that’s the expectation they are likely to keep rates on hold.”
Fed expected to hold interest rates
The latest consumer price index report in the US was released on Tuesday, revealing that stock inflation slowed to 4.1% year on year in May, according to economists polled by Reuters. This reading marks a significant improvement from April’s 4.9% rate after 5% in March and gives the Fed more room to pause. Streeter said, “Any deviation from the expected path could cause a jolt of volatility in the markets.”
European Central Bank to raise its deposit rate
On the eastern side of the Atlantic, economists remain convinced that the European Central Bank will raise its deposit rate by another quarter of a percentage point when policymakers meet on Thursday. Europe’s Stoxx 600 regionally rose 0.3%, while France’s Cac 40 gained 0.6% and Germany’s Dax 0.8%. London’s FTSE 100 rose 0.1% but was held back by a 0.8% decline in its critical energy sector. UK-listed BP and Shell both lost around 1% in this decline.
Oil prices fall plans in the wake of Goldman Sachs’ price estimate revision
Oil prices fell after Goldman Sachs revised its year-end price estimate for international benchmark Brent crude to $86 from $95 after two previous downward revisions in recent six months. Investor fears regarding fuel demand have grown on the back of lukewarm data on Chinese exports and producer price deflation, indicating weak demand outside and inside the world’s second-largest economy. Brent crude fell 2.5% to $72.93, while U.S. marker West Texas Intermediate fell 3% to $68.03.
Asian stocks rising
Asian stocks rose, with China’s CSI 300 index up 0.2%, while Hong Kong’s Hang Seng index gained 0.1% and Japan’s Topix rose 0.7%.
Additional Piece
With inflation worries in the US and concerns about China’s slowing economic growth, investors are responding cautiously, with stocks unstable in recent weeks. As we approach the year’s halfway point, market analysts say this trend is harming the economy’s growth.
Market analysts point fingers at the changing nature of the world economy, with disruptions in long-standing commercial models in the areas of labor, capital, and natural resources. Alongside the rise in economic nationalism is a rising sense that this dysfunction will not be resolved quickly. These conditions could cause both near-term volatility and long-term uncertainty that would have consequences for the global economy
The success of these new digital business models rests on their mobility, innovation, and integration. In this current climate, it is increasingly uncertain whether the right policies and investment risk strategies are being developed to support their growth.
No firm conclusions can be drawn about the progression of the cyclic economy, although the pattern of past business cycles suggests that an economic slowdown is accelerating. Many predict that the recession is just around the corner, with the latest economic indicators showing an unfortunate peculiarity of the US economy. Rather than moving away from the fate of the economic cycle, it is heading towards it.
The uncertainty around trade tensions between the US and China, the decline in global growth momentum, the reduction in ECB’s stimulus, high oil prices, and other external factors, are all weighing on the global outlook, which is shifting toward weaker and less predictable growth.
In a constantly changing and uncertain economic environment, it is essential that investors consider sound advice when navigating these times. Investors need to be pragmatic, diversify their investments, and re-evaluate their investment strategies frequently to ride out the storm.
Summary
Investors are awaiting the release of the key US inflation data that will likely influence Federal Reserve policy makers set interest rates. Buoyed by the thought that the Federal Reserve will resist raising interest rates, Wall Street’s benchmark index, the S&P 500, rose 0.3%, consolidating its move into bull market territory last week, while the tech-heavy Nasdaq Composite gained 0.2%. On the eastern side of the Atlantic, economists still expect the European Central Bank to raise their deposit rate by a quarter of a percentage point when policymakers meet on Thursday. With Goldman Sachs’ downward revision of the year-end price estimate for international benchmark Brent crude, oil prices fell and investor fears grew. The future looks uncertain, with global growth slowing and the economy heading towards a recession. It is imperative that investors consider sound advice when navigating these times.
—————————————————-
| Article | Link |
|---|---|
| UK Artful Impressions | Premiere Etsy Store |
| Sponsored Content | View |
| 90’s Rock Band Review | View |
| Ted Lasso’s MacBook Guide | View |
| Nature’s Secret to More Energy | View |
| Ancient Recipe for Weight Loss | View |
| MacBook Air i3 vs i5 | View |
| You Need a VPN in 2023 – Liberty Shield | View |
Wall Street stocks rose on Monday as investors awaited the release of key US inflation data that will likely influence Federal Reserve policy makers when they set interest rates this week.
Wall Street’s benchmark index, the S&P 500, rose 0.3%, consolidating its move into bull market territory last week, while the tech-heavy Nasdaq Composite gained 0.2%.
Shares were buoyed by bets that the Federal Reserve will resist raising interest rates when it meets on Tuesday and Wednesday, marking the first break in the central bank’s 14-month campaign to tame inflation.
“With signs that the economy is dragging into a potential recession, that’s the expectation [Fed policymakers] they are likely to keep rates on hold,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The latest report on the US consumer price index was released on Tuesday. You are expected to prove it stock inflation slowed to 4.1% year on year in May, according to economists polled by Reuters.
The reading would mark a significant improvement from April’s 4.9% rate, after 5% in March, and give the Fed more room to pause.
“Any deviation from the expected path could cause a jolt of volatility in the markets,” Streeter said.
On the eastern side of the Atlantic, economists are still convinced that the European Central Bank will raise its deposit rate by another quarter of a percentage point when policymakers meet on Thursday.
Europe’s Stoxx 600 regionally rose 0.3%, while France’s Cac 40 gained 0.6% and Germany’s Dax 0.8%.
London’s FTSE 100 rose 0.1%, but was held back by a 0.8% decline in its crucial energy sector. Shares of UK-listed BP and Shell both lost around 1%.
The moves came as oil prices fell on Monday after Goldman Sachs revised its year-end price estimate for international benchmark Brent crude to $86 from $95, after two previous downward revisions in recent six months.
Investor fears about fuel demand grew on the back of lukewarm data on Chinese exports and producer price deflation, pointing to weak demand both outside and inside the world’s second-largest economy.
Brent crude fell 2.5% to $72.93, while U.S. marker West Texas Intermediate fell 3% to $68.03.
Asian stocks rose, with China’s CSI 300 index up 0.2%, while Hong Kong’s Hang Seng index gained 0.1% and Japan’s Topix rose 0.7%.
https://www.ft.com/content/4c63b2a8-bce3-4fc4-8466-9de1a36b94b3
—————————————————-