Waiting for US inflation to give fresh direction… | MarketTalk: What’s up today? | Swissquote

Show notes

The FTSE 100 and the Stoxx 600 index closed at a fresh ATH on the back of rising dovish central bank expectations. The EURUSD bounced lower from the 50 and 200-DMA, while Cable tested its own 200-DMA to the upside on the back of strong GDP read, but the currency pairs need good news from the US inflation front to clear key resistances this week.
Happily, the crude oil chart gives some hope regarding the energy inflation. The barrel of US crude fell 1.75% on Friday and slipped below the 100-DMA. The price of a barrel has been unable to make a move above the all-important $80pb level since it fell below this level at the start of May. Yet the geopolitical tensions remain high.
China, on the other hand, continues to struggle with its own demons. Released during the weekend, the data showed that CPI rose, PPI contracted and the aggregate financing in China fell for the first time in history on the back of slower government bond issuance and a decline in shadow banking.
Elsewhere, the earnings calendar is busy with US big retailer earnings this week. The Chinese Alibaba will also report earnings, OpenAI is expected to announce some updates this Monday and Alphabet’s Google hosts its annual developer conference this week, which could bring plenty of AI news on the headlines.
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