The IMF lowered its global growth forecast to 2.9% but boosted its inflation projection from 5.2% to 5.8% for next year, but investors preferred listening to the growing choir of Federal Reserve (Fed) members singing the dovish tune. The US yields remained under pressure.
But be careful, due today, the FOMC minutes will remind investors that ‘the rates will stay higher for longer’ if inflation remains above target.
For now, softer yields please equity investors. The S&P500 extended its rebound into the third straight session yesterday, and Nasdaq pulled out its 50-DMA resistance and closed above this level. Chinese equities, on the other hand, rallied after the IMF recommended Beijing to take ‘forceful action’ on its real estate troubles, and on news that China was considering fresh stimulus measures to boost growth, anyway. Let’s see if this time is the charm – I am not convinced.
In the FX, the US dollar is giving back strength globally, the EURUSD extended gains above the 1.06 mark, and Cable is preparing to test the 1.23 offers.
The barrel of American crude sees solid support near the 50-DMA ($85.50pb level); mounting tensions in the Middle East threaten the bears; daring a short position in oil is risky beyond a corrective move.
Watch the full episode to find out more!
0:00 Intro
0:37 IMF’s growth & inflation forecasts were bad…
2:38 But investors wanted to focus on dovish Fed talk..
3:51 … which could get spoiled by FOMC minutes & US inflation data
5:08 Equities surf on lower yields
5:57 FX & energy update
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
#FOMC #minutes #IMF #growth #inflation #forecast #Israel #Hamas #geopolitical #tensions #crude #oil #USD #EUR #CAD #GBP
#SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news
#Swissquote #MarketTalk #marketanalysis #marketcommentary
_____
Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: [ Ссылка ]
_____
Discover our brand and philosophy: [ Ссылка ]
Learn more about our employees: [ Ссылка ]
_____
Let's stay connected:
LinkedIn: [ Ссылка ]
