European Markets Brace for Flash PMIs Amidst Fed and ECB Speaker Engagements
As global markets gear up for a new week of trading, attention turns to China’s hesitant post-holiday performance and the eagerly anticipated results from tech giant Nvidia. Here’s what to expect in the day ahead:
China’s Market Disappointment:
Despite high hopes for a robust return after the Lunar New Year break, China’s markets have failed to impress, with modest gains in stocks falling short of expectations. While tourism revenues surged during the holiday, concerns linger over the country’s central bank’s decision to hold off on rate cuts, amidst looming deflationary pressures. Analysts anticipate further policy stimulus to counteract economic headwinds.
Nvidia’s Moment of Truth:
Eyes are on Nvidia as the tech behemoth prepares to unveil its latest financial results. With sky-high valuations and a hefty price-to-earnings ratio, investors are eager to gauge the company’s performance. Nvidia’s market cap surge this year has been a significant contributor to broader market gains, making its results a focal point for the entire industry.
European Market Outlook:
While no major data is expected from Europe on Monday, flash PMIs later in the week will be closely watched, along with ECB surveys on consumer inflation expectations and wage data. Analysts anticipate a resumption of the downtrend in inflation expectations, despite policymakers’ concerns about rising wages.
Central Bank Engagements:
The week ahead will see a flurry of central bank engagements, including speeches from Federal Reserve Vice Chair Philip Jefferson and Governor Christopher Waller. The release of minutes from the Fed’s last meeting will offer insights into policymakers’ views on inflation dynamics, amidst forecasts of a potential rise in core PCE inflation for January.
Market Sentiment and Fed Futures:
With lingering uncertainty surrounding inflation and interest rate expectations, market sentiment remains cautious. Fed futures indicate a diminished likelihood of rate cuts, reflecting shifting expectations in response to evolving economic indicators.
As global markets navigate through a landscape of economic challenges and policy developments, investors remain vigilant for cues that could shape future market trends.
Subscribe to Follow Global Trends for daily global news.To Advertise, send a mail to advertise@followglobaltrends.com
Credit: Wayne Cole