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The markets regain ground

The markets regain ground

Currently, the situation surrounding the Russia-Ukraine conflict remains uncertain, but investors are starting to be more optimistic.

Yesterday’s trading session began with a slight increase in risk aversion due to US government and NATO comments questioning the Kremlin's statements about the withdrawal of troops from the Ukraine border. However, the NATO Secretary-General himself recognized that some improvements in the diplomatic field were made.

Still, the improvement in investors' risk sentiment came later after Fed's meeting minutes came out.

According to the central bank’s statements, officials favored raising interest rates and initiating a "significant" reduction in the size of the balance sheet that could begin later this year. This is nothing new compared to what the market had already expected.

But the minutes also showed that Fed members would only favor faster rate hikes if the pace of inflation increases. These dampened expectations of an aggressive Fed move at the next meeting in March. The minutes, however, were somewhat outdated, as they preceded recent economic data showing a stronger labor market and inflation remaining at the highest level in decades.

Next week the important report on personal consumption expenditures will be published - the Fed's preferred measure of inflation - which will be closely followed by investors, and which could offer more clues about the bank’s next decision.

Forecasts point to a more moderate figure than could dampen expectations of an aggressive tightening of US monetary policy.

After knowing the content of the minutes of the Federal Reserve, the US dollar weakened slightly against most of its peers, and the yields of treasury bonds fell. As a consequence of an improvement in risk sentiment, stock indices recovered ground, and they ended up positive at the end of the session.

The S&P500 index was the one that had the best performance, closing with gains of 0.26% around the 200-day moving average that it must overcome to resume upward momentum towards the 4570 area through which the 100-day moving average passes.

Sources: Bloomberg, Reuters.

Le informazioni contenute nel presente documento sono redatte da Miguel A. Rodriguez e non costituiscono né devono essere interpretate come suggerimenti di investimento. Le informazioni di cui al presente documento costituiscono comunicazioni di marketing generali a scopo informativo e, in quanto tali, non sono state preparate nel rispetto dei requisiti di legge che promuovono le ricerche di investimento indipendenti. Inoltre, non sono soggette ad alcuna limitazione sulle transazioni condotte in anticipo rispetto alla divulgazione delle ricerche di investimento in questione.

Gli utenti / lettori non dovrebbero fare affidamento esclusivamente sulle informazioni qui presentate e dovrebbero fare le proprie ricerche / analisi anche leggendo la ricerca reale sottostante.

Key Way Investments Ltd non influenza né ha alcun input nella formulazione delle informazioni qui contenute. Il contenuto è generico e non tiene conto di circostanze personali individuali, esperienza di investimento o situazione finanziaria attuale.

Pertanto, Key Way Investments Ltd non accetta alcuna responsabilità per eventuali perdite di trader a causa dell'uso e del contenuto delle informazioni presentate nel presente documento. Le prestazioni passate e le previsioni non sono un indicatore affidabile dei risultati futuri.