Global stocks witnessed slight movements at the beginning of a week packed with data and central bank meetings, which would test the extent of investor optimism about a decline in interest rates soon.
Traders are looking forward to US inflation data, which will be released tomorrow, Tuesday, in addition to the US Federal Reserve’s decision on Wednesday, and retail sales data on Thursday. In addition to the monetary policy decisions of the European Central Bank and the Bank of England.
Mohit Kumar, chief European economist at Jefferies International, said that this week is the last week full of data before entering a period of tight liquidity due to the New Year holidays, suggesting that central banks will refute expectations of a rate cut.
European stocks and US futures moved slightly, as well as the Asian stock index, while Asian stocks fell after the report, issued on Saturday, showed that the consumer price index fell at the slowest pace in three years, while producer costs fell to negative territory, which confirms the challenges hindering... Economic recovery.
While the S&P 500 index ended six weeks of gains on Friday, the longest series of gains since November 2019, following strong jobs data, which strengthened expectations that the largest economy in the world will be able to avoid a recession.
Swaps now show a 40% probability that the Fed will cut interest rates in March, down from 50% before the economic data.
