Ipek Ozkardeskaya
Swissquote Bank Ltd
Stocks on this side of the Atlantic Ocean are better bid these days than their American peers thanks to a combination of too-lofty valuations in the US, good corporate earnings from European companies and the expectation of looser monetary policies in Europe and the UK sooner than in the US. Plus, the AI rally – that’s been boosting the major US indices - looks like it is losing momentum.
On the central bank front, the Riksbank opted for a 25bp cut yesterday, as expected, and said that there could be two more rate cuts this year, the European Central Bank (ECB) is expected to cut its rates when it meets in June, and the Bank of England (BoE) will – maybe – give more details on its plans to lower rates at today’s MPC decision.
What’s interesting is the European and Brits’ determination to ease their monetary policies regardless of what the Federal Reserve (Fed) will do despite the risk of seeing their currencies depreciate and re-boost the domestic price pressures.
The BoE is not expected to cut its policy rate today, but the MPC is expected to agree less on when to cut rates.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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