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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 The minutes, however, were somewhat outdated, as they preceded recent economic data showing a stronger labor market and inflation remaining at the highest level in decades.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.

Informațiile prezentate în acest document sunt pregătite de Miguel A. Rodriguez și nu au intenția de a constitui consultanță pentru investiții. Informațiile din acest document sunt furnizate drept o comunicare generală de marketing cu scop informativ și, ca atare, nu au fost pregătite în conformitate cu cerințele legale concepute pentru a promova cercetările independente în domeniul investițiilor și nu sunt supuse niciunei interdicții de abordare înainte de diseminarea cercetărilor de investiții. Nu au în vedere obiective specifice de investiții, situații financiare sau nevoi specifice ale vreunui destinatar.

Utilizatorii/cititorii nu ar trebui să se bazeze exclusiv pe informațiile prezentate aici și ar trebui să facă propriile lor cercetări/analize, prin citirea cercetărilor de bază.

Key Way Investments Ltd nu influențează și nici nu are vreo contribuție la formularea informațiilor conținute de acest document. Conținutul acestui document este generic și nu ia în considerare circumstanțele personale ale fiecărui individ, experiența de investiții sau situația financiară actuală.

Prin urmare, Key Way Investments Ltd nu va accepta nicio responsabilitate pentru eventualele pierderi ale traderilor datorate utilizării sau conținutului informațiilor prezentate în acest document. Performanțele trecute și previziunile nu sunt indicatori fiabili ai rezultatelor viitoare.