Starting the week on better-than-expected inflation data investors took a breather, however central bank policies hammered this positive sentiment and left the hawkish message that the rates will continue to go higher until inflation is firmly sustained. The signal of higher-than-expected peak rate shook Markets that closed the week negative; another losing week for US and EU markets as fears for recession keep growing.
“Central banks delivered a blow to markets that were rebounding in anticipation of policymakers turning dovish on inflation and interest rates,” said Sunil Krishnan, head of multi-asset at Aviva Investors.
A barrage of US statistics this week that showed the economy weakening even as the labor market remained robust also caused traders some concern. The Fed’s major concern continues to be a softening of the labor market.
According to Art Hogan, chief market analyst at B. Riley Wealth, “the market has been in a tug-of-war between better-than-feared economic statistics and fears about the potential for the Fed to over-tighten monetary policy and force the economy into a recession.” If the Fed doesn’t reach its terminal Fed Funds rate by the first quarter of 2023, the tug-of-war will probably continue.
Oil prices fell by nearly $2 per barrel as a result of the spillover selling into the commodities markets. Following the Federal Reserve’s announcement that it was not done raising rates, gold prices experienced their largest weekly decline in four weeks.
Relief at the rumored end of a protracted accounting access issue with the United States was not enough to boost confidence in China, where markets are teeming with uncertainty surrounding an uncertain reopening.
Disclaimer: Important Disclosures and Disclaimers. This report is intended for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell or a solicitation of any offer to buy any security. It is recommended that investors independently evaluate the strategies and consult a financial adviser before proceeding to the purchase or sale of any security or other financial instrument. Also note that past performance may not be a reliable indicator of future returns. Investors may not get back the original amount invested. This report has been compiled based on information that I believe is reliable, but the accuracy, completeness, or correctness cannot be guaranteed. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice.
The use of forward looking wording such as “expect”, “estimate”, “forecast”, involve known and unknown risks and uncertainties which may mean that the actual results may differ from any future results implied by the forward looking wording included in the relevant statement
Main line: (357) 22 256582
Brokers: (357) 22 275323
Fax: +357 22 262545
41 Archbishop Makarios III Avenue, Toumazis Makariou Tower, 1st Floor, Office 11, 1065 Nicosia, Cyprus
There is a high level of risk involved with trading leveraged products such as CFDs. You should not risk more than you can afford to lose, it is possible that you may lose all your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. If the risks involved seem unclear to you, please seek independent advice. For further details please refer to Financial Instruments Description and Associated Risks. The information contained in the website has been prepared by Emporium Capital K.A Limited, a Cypriot Investment Firm, operating under license number CIF358/18 issued by the Cyprus Securities and Exchange Commission, and, except otherwise specified herein, is communicated by Emporium Capital K.A Limited. Although this website is accessible worldwide, the publications are only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. The products and services referred to in the publications are not intended for recipients residing in countries where the provision of such products and services would constitute a violation of applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting a product or service to comply with all applicable legislation or regulations. >> view more