UBS lifts S&P 500’s year-end target to Street high of 5,600
UBS Global Research raised its year-end target for the benchmark S&P 500 index to 5,600 points, marking the highest forecast among major brokerages.
us inflation
Euro steadies as markets eye Eurozone, US inflation data
The EURUSD pair is trading around 1.0850 in a tight range. ECB policymakers are hesitant to commit to further rate cuts beyond June due to concerns about reviving price pressures. Traders have lowered expectations of three rate cuts to two this year. Higher wage growth is leading to increased consumer spending and inflationary pressures. Germany’s Ifo Business Climate data for May missed estimates, with the Business Climate Index, Current Economic Assessment Index, and Expectations Index all falling short of expectations.
Crude oil pares losses, WTI rebounds into congestion
West Texas Intermediate (WTI) rebounded on Friday, recovering from a fresh 12-week low set early in the day at .03. The benchmark US crude remains down on the week, in the red by -2.38% from Monday’s opening bids.
Dollar juggles as Fed officials support higher-for-longer
EURUSD is trading near 1.0850 in a tight range as the US Dollar stabilizes ahead of the FOMC Minutes and preliminary S&P Global PMI data. ECB policymakers are considering extending the rate-cut cycle, while Fed officials are emphasizing the need to maintain a restrictive policy framework. US inflation declined in April, and policymakers want to see more good inflation data before making any changes to monetary policy. Fed Vice Chair Barr and Atlanta Fed President Bostic both expressed the need for more time to be certain that inflation will reach the 2% target.
A hidden factor impacting gold, and it ain, ’t CPI
Gold prices are fluctuating as traders speculate on a potential rate cut by the Federal Reserve in September. Inflation data in the US is showing signs of improvement, impacting the Fed’s monetary policy decisions. Smart money is paying attention to the shift from a dollar-denominated trade system, with countries like China and Russia increasing their gold reserves to support their currencies. The price of gold is approaching all-time highs and is expected to continue its upward trend as long as it stays above the 50-day simple moving average.
After soft U.S. CPI, is Fed rate cut wishful thinking?
Fact: Federal Reserve chair Jay Powell indicated that officials are in no rush to cut borrowing costs.
GBP extends upside on weaker dollar
The GBPUSD pair rose near 1.2688 due to weaker US CPI inflation data. Inflation in the US eased slightly in April, with the CPI rising 3.4% on a yearly basis. The softer inflation data raised the odds for a Fed rate cut in 2024, leading to a weaker dollar and supporting the GBPUSD pair. The UK employment data showed deteriorating job market conditions, and Bank of England policymakers are concerned about high service inflation potentially stalling progress in the disinflation process.
Dollar tumbles on soft inflation, weak retail sales
The EURUSD pair reached a monthly high near 1.0870 as the US Consumer Price Index eased and Retail Sales remained stagnant in April.
Dollar extends losing streak ahead of US CPI
The USDJPY pair dropped to 155.50 in early European trading as the US Dollar continues to weaken. Investors are confident that the Federal Reserve will start reducing interest rates from September. The US Consumer Price Index data for April is awaited to provide insight into the interest rate outlook. Economists expect Japan’s Q1 Gross Domestic Product to show a contraction.
Will markets keep up gains this year?
The CEO of a financial advisory and fintech firm predicts that the US and European stock market rallies will continue despite the US central bank potentially not cutting rates until 2025. The expectation is based on strong earnings growth, especially in AI-focused companies, and positive economic forecasts from institutions like the IMF and Bloomberg. Additionally, signs of economic rebound in China and Europe are contributing to the optimistic outlook. The anticipation of interest rate cuts in response to a potential economic slowdown is also seen as a factor that could bolster equities. Savvy investors are advised to adopt strategic approaches to capitalize on the upward momentum while managing potential risks. April’s US consumer price index report is awaited, with traders hoping for no return to rate hikes by the Federal Reserve. Both narratives point to a likely continuation of stock market gains, with investors advised to top up their portfolios judiciously with guidance from financial advisors.