The market is preparing for a series of speakers from the US Federal Reserve this week, where they could underline the commitment to fight inflation in a determined way. This is something that investors have already assumed and that some Fed members have corroborated in recent statements, as Bullard did yesterday.
It could also be the case that Powell, who will speak this week, would be more flexible and cast some optimism on the market. This could happen if, in his remarks, he leaves open the possibility of a less restrictive policy if the inflation figures improve in the coming months.
Meanwhile, on a quiet US holiday, Wall Street Index futures posted gains that can be simple technical corrections from the previous day's declines.
The best performer was the technological Nasdaq, with an advance of 0.90%, but still far from the resistance zone of 11,790, where it should gain upward momentum if it exceeds it.
European stock markets also performed well after the fall caused by the announcement of the end of bond purchases by the ECB. The subsequent declarations by which the European Central Bank undertook to create a mechanism that would prevent the fragmentation of the European debt market helped the latter gain confidence, reflected in the European indices.
Despite elections results in France, where President Macron lost the majority in the legislative chamber, potentially causing instability in Europe, the German DAX index rose 1% yesterday but was still in a downtrend.
Sources: Bloomberg.com, reuters.com
