The US Debt Market Does Not Believe In Sustained Inflation Growth, So Investors Are Expecting The Maintenance Of A Soft Stimulus


This Wednesday the Federal Reserve will report on the interest rate and report on further plans for monetary policy. With inflation slowing monthly, analysts are confident the Fed will not change anything and keep monetary policy quiet until at least August. On Friday, the rise in stock indices also confirmed these expectations. The S&P 500 rose 0.19%, the NASDAQ jumped 0.35%, and the Dow Jones remained flat. The companies of the technology, consumer services and discrete sectors have become consumers.

European stock market indices closed with a rise last week. On Friday the German DAX rose 0.78%, the British FTSE 100 added 0.65%, and the French CAC 40 jumped 0.83%. Europe’s investment climate is also improving. Data on inflation, unemployment and retail sales will be released in the UK next week. Positive data will strengthen the British currency and the FTSE 100 index.

Gold prices fell sharply on Friday. One reason for the fall is that the rise in inflation has really turned out to be temporary, so gold, as a protective asset against inflation, no longer attracts investors. But as long as the yield on treasury bonds is still at its minimum price, and experts predict a further decline, up to 1%, prices for precious metals will remain high. Silver is in a more confident position now.

Oil prices continue to rise. The summer season is growing, fuel demand is rising, so don’t expect prices to fall, but analysts are still expecting a slight correction as there have been no significant corrective moves from $ 61 to $ 71.

Asian stock market is following the US market. On Monday in the opening, the Japanese Nikkei index has already grown by 0.74%, while the Australian ASX 200 added 0.13%. China’s “blue” CSI 300 index is declining. On Wednesday, China will release data on industrial production and retail sales that will allow investors to assess the country’s future economic prospects. At the same time, Thailand is experiencing coronavirus in factories, including seaports. Thus the export sector could be severely affected.

Main market quotes:

  • S&P 500 (F) 4,247.44 +8.26 (+ 0.19%)
  • Dow Jones 34,479.60 +13.36 (+ 0.04%)
  • DAX 15,693.27 +122.05 (+ 0.78%)
  • FTSE 100 7,134.06 +45.88 (+ 0.65%)
  • USD Index 90.51 +0.44 (+ 0.48%)

Important events:

  • UK BOE Governor Andrew Bailey speaks at 16:00 (GMT + 3).



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