Notifications Bell

Stock markets resume their downward trend

Stock markets resume their downward trend

Fed Chairman Powell did little to calm the troubled analysts & investors.

Mr. Powell said, in his second day of testimony in the US Congress, that Russia's war in Ukraine could affect the US economy by leading to a significant decrease in spending and investments, which translates into higher prices.

US stock indices, which had started the session with gains, fell to close with losses due to investors' fear of the threat of stagflation that Powell anticipated in his statements.

Investors are now wondering what the reaction of the Federal Reserve will be facing the threats of rising inflation and slowing economic growth. As was commented in the market, the fear is not because of possible stagflation but of the Fed's reaction in this scenario.

Paradoxically, suppose the US employment figure published today will show strength, especially in the wage component. In that case, it could be interpreted negatively in the market, considering that the Fed's reaction in terms of interest rates could be more aggressive than was expected just two days ago.

In short, indecision and uncertainty prevail in a market that continues to be dominated by news from Ukraine and the unpredictability of the conflict. The defensive stocks are the ones that have shown the best performance in the markets, while the growth stocks have suffered considerable losses.

Nasdaq was the most affected index, with more than 1.5% falls. However, from a technical analysis perspective, it didn’t suffer notable changes compared to the last days when it traded in a mixed manner, a characteristic movement of an indecisive market.

After reaching the maximum level of $116.50/barrel, oil corrected downwards. The black gold's price fell not because the conflict between Russia and Ukraine improved, which unfortunately is still in full war confrontation, but because news has arrived that an agreement has probably already been reached with Iran to lift sanctions.

According to the daily RSI, oil is in an overbought situation but still far from levels that can be considered as pivots or the beginning of a trend change.

Sources: Bloomberg, Reuters.

Die hier präsentierten Informationen wurden von Miguel A. Rodriguez erstellt und sind nicht als Investitionsberatung gedacht. Die hierin enthaltenen Informationen werden als allgemeine Marketingmitteilung nur zu Informationszwecken bereitgestellt. Als solche wurden sie nicht in Verbindung mit gesetzlichen Bestimmungen zur Förderung der Unabhängigkeit des Investment Research erstellt. Sie unterliegen nicht dem Verbot, vor der Verbreitung eines Investment Research gehandelt zu werden.

Die Benutzer / Die Leser sollten sich nicht nur auf die hier präsentierten Informationen verlassen und sollten ihre eigene Forschung / Analyse durchführen, indem sie auch die eigentliche zugrunde liegende Forschung lesen.

Key Way Investments Ltd hat keinen Einfluss auf die Formulierung der hierhin enthaltenen Informationen.Der Inhalt ist dabei generisch und wird nicht die individuelle persönliche Umstände,Anlageerfahrungen oder die aktuelle finanzielle Situationen berücksichtigten.

Daher übernimmt Key Way Investments Ltd keine Haftung für Verluste von Händlern aufgrund der Verwendung und des Inhalts der hierin enthaltenen Informationen. Die in der Vergangenheit gezeigte Performance und gemachten Prognosen sind kein zuverlässiger Indikator für künftige Ergebnisse.