ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

Weather forecasts promise a cloudy weekend on the markets

Share On Facebook
share on Linkedin
Print

Over the course of last week, the S&P 500 index gained 0.6%, the Russell 2000 index +0.6%, and the NASDAQ Composite +1.4%. In Europe, the EURO STOXX 50 index added 0.5%, and the STOXX Europe 600 index +0.7%. Among other things, stock market optimism was boosted by Jerome Powell’s dovish speech. Although inflation pressures remain high, the regulator seems prepared to moderate the pace of interest rate hikes.

© Image copyright nirak

As of this week, investors will pay close attention to the weather forecast in the European Union. Gas and electricity consumption is expected to increase with the arrival of the first cold snaps. Although 98.24% of the GSUs are complete, a further drop in temperature could cause a jump in the price of natural gas.

This, in turn, could easily trigger inflation expectations. Subsequently, regulators would be forced to continue tightening regulatory policy. Investors will follow the ECB governor’s speech on Thursday for more clues. The hawkish rhetoric, in combination with the falling PPI in the US, could support the EUR/USD pair.

Speaking of the world’s first economy, even though the recent labor market report was better than expected, companies are preparing for the worst. After Big Tech, Warner Bros. and Gannett Co. started to reduce their headcount. Unless forecasts improve, more layoffs could follow.

The question then becomes, how to prepare for a possible recession? By increasing investments in defensive assets. Among other things, demand has increased for stocks in the energy and financial sectors, the healthcare industry, and gold. A boost to the bearish trend could come from the pessimistic US service sector PMI data for November.

The index will be released this afternoon and could set the tone for the rest of the week. The fact that the economy is slowing will also hurt the bond market. According to Refinitiv Lipper, investors withdrew $1.7 billion from high-yield funds in the last reporting period.

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com