- May 20, 2024
- By: Admin1_blog
- EU Market, Indices
Holly Ellyatt
European markets are heading for a positive open at the start of the new trading week, building on positive momentum seen last week.
Global markets got a boost last week after U.S. inflation data came in softer than expected for April, bolstering hopes that the U.S. Federal Reserve could begin cutting rates later in the year.
U.S. stock futures ticked higher on Sunday night, after the Dow Jones Industrial Average closed above the key 40,000 level for the first time ever on Friday.
Meanwhile, Asia-Pacific markets mostly rose overnight, tracking Wall Street gains, as investors await economic data from across the region this week, including Japanese inflation and business activity figures.
Stocks will experience near-term choppiness followed by a late-year rally, Wells Fargo says
Stocks have rallied to record highs recently, but Wells Fargo is expecting this trend to turn on its head.
Analyst Christopher Harvey pointed out that the “bad news = good news” narrative has pushed the major stock indexes to new records. However, he believes the market is unlikely to continue pushing higher consistently, at least for now.
“Expect near-term choppiness with a late-year rally toward our SPX 5535 target,” he wrote.
Harvey’s year-end S&P 500 target represents a 4.5% move upward for the benchmark.
— Lisa Kailai Han
The Fed will cut rates this year upon a ‘return of disinflation,’ UBS says
Softer economic data in recent weeks bolsters the argument that investors may finally receive some much-anticipated rate cuts in 2024, UBS argued in a Friday note.
“We continue to believe recent economic data underpin our view that a return of disinflation should allow the Fed to start easing policy later this year,” the bank wrote.
UBS added that price pressures have also been easing in recent months in categories such as shelter, which should help bring down overall inflation.
— Lisa Kailai Han
European markets: Here are the opening calls
European markets are expected to open higher Monday.
The U.K.’s FTSE 100 index is expected to open 16 points higher at 8,433, Germany’s DAX up 51 points at 18,759, France’s CAC 27 points higher at 8,186 and Italy’s FTSE MIB up 130 points at 35,194, according to data from IG.
Earnings come from Ryanair. Data releases include German producer prices for April.
— Holly Ellyatt
Source : cnbc
