Fallout after US inflation
Bloomberg — Treasuries continued to rise Friday and the dollar sank after yesterday’s signal of a inflationary slowdown in the US will encourage investors to bet that the Federal Reserve will slow its pace of interest rate hikes next month. Meanwhile, there are signs that investors are taking in the slowdown in inflation, which explains the more subdued reaction in stocks.
The UK could avoid slipping into an anticipated recession until the end of this year, as the soccer World Cup kept consumers spending during the country’s worst cost-of-living crisis in living memory. Gross domestic product unexpectedly rose 0.1% in November, according to data released Fridayand statisticians said the December number would have to fall by around 0.5% to generate a contraction in the fourth quarter.
Expectations of a change in monetary policy at the central bank of Japan are growing. After December’s surprise adjustment to the 10-year yield band, More and more economists are predicting further policy easing starting in the second quarter and more than half of the economists surveyed expect a change from the Bank of Japan by the end of July. Such speculation sent the yen rising 2% against the dollar on Thursday, its highest level since June, while 10-year bond futures fell to their lowest level since 2014.
weekly advance for shares
A benchmark index of global stocks was heading for the biggest weekly gain since November, while European stocks were heading for the strongest performance on record in the first two weeks of January. S&P 500 futures they moved down while investors await the financial results of the main banks of Wall Street. Oil was heading for a weekly advance.
The results of the banks are the most attractive data today. Reporting companies include JP Morgan, Citi, BNY Mellon, Wells Fargo, Bank of America, Blackrock, Delta, First Republic and UnitedHealth. In terms of data, the United States will release import and export price figures, as well as the confidence indicator from the University of Michigan. Trading will then slow due to Martin Luther King Jr. Day in the US on Monday.
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