The equity market is looking to jump over the next big barrier this week [Video]
|Equity bulls around the globe celebrated in style the softer-than-expected US CPI data last week. The global equity rally was further juiced by the expectation that a softer inflation in the US would not only allow the Federal Reserve (Fed) to start cutting the rates this year, but also allow the other major central banks, like the European Central Bank (ECB) and the Bank of England (BoE), to carry on with their plans to cut their own rates and – maybe – cut more than people think they could.
Global stock indices refreshed record, treasuries gained and the USD fell.
This week, attention shifts to Canada, UK inflation updates, the RBNZ meeting, the FOMC minutes and Nvidia earnings.
Note that, the price-to-estimated earnings of the S&P500’s technology sector bounced above the 28 level, which has acted as an important resistance since 2020. Therefore, the current levels could well be appropriate for a correction. And a potential disappointment from Nvidia could pull that trigger… or not!
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