All was going well yesterday; equities were in the green, when suddenly the dark clouds gathered and it started raining in the markets. The biggest catalyzer of yesterday’s sentiment reversal was the stronger-than-expected US economic data, which revived the Federal Reserve (Fed) hawks and sent the equity indices lower. The S&P500 and Nasdaq slumped more than 1%.
Although the US futures are again in the positive this morning, we saw yesterday that the winds could rapidly change direction, and the volatility is picking up. Due today, investors will be watching the US ADP and the European CPI data. The rising inflation in Europe revives the European Central Bank (ECB) hawks. ECB's Muller said yesterday that the ECB should discuss 75 bp hike at the September policy meeting , as inflation outlook has failed to improve. And Goldman Sachs warned that inflation in Britain could hit 22% next year if the natural gas prices remain high. The ECB and the BoE hawks are not sleeping in their corner, but the hawkish expectations are clouded by a strong US dollar, and growing recession fears.
Watch the full episode to find out more!
0:00 Intro
0:27 Good news is bad news for US equities
3:46 ADP in focus
5:38 European inflation pushes higher, but EURUSD bulls remain timid
7:23 Goldman Sachs sees UK inflation hit 22% next year!
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020. #US #jobs #ADP #data #USD #EUR #GBP #inflation #energy #crisis #natural #gas #crude #oil #SPX #Dow #Nasdaq #investing #trading #equities #stocks #cryptocurrencies #FX #bonds #markets #news #Swissquote #MarketTalk #marketanalysis #marketcommentary ___ Learn the fundamentals of trading at your own pace with Swissquote's Education Center. Discover our online courses, webinars and eBooks: https://swq.ch/wr ___ Discover our brand and philosophy: https://swq.ch/wq Learn more about our employees: https://swq.ch/d5 ___ Let's stay connected: LinkedIn: https://swq.ch/cH
