US inflation data raise pause expectations for FED
Last Update: 27/12/2024
US inflation data continue to indicate a cooling of consumer prices, with the peak now seemingly behind us. Financial markets continue to believe that the Fed’s halt to hikes is imminent, even though very cautious comments are coming from members of the central bank. A labour market that continues to remain healthy and the outlook for growth in Europe, which is less pessimistic than it was a few months ago, mean that the financial markets are heading upwards in the short term. Let’s take a look at a few figures in relation to our analysis.
In the past week, 86% of the instruments and indices used for our analyses showed a positive change. 14% experienced a negative variation. Analysing by macroclass, 88% of equity instruments and indices recorded a positive weekly variation. 95% of the bond instruments and 72% of the other asset classes used for our analyses. In particular, analysts insist on suggesting that we look above all at indications from the bond market, which with the latest rises, reinforced by falling US inflation data, seems to indicate that the end of the restrictive monetary policy phase is near.
Improving valuations in the past week accounted for 19% of the total. In the previous week, upwardly adjusted valuations were 28% of the total.
Among the equity analyses, improving valuations accounted for 19% of the total.
Among the analyses for bonds, 37.5% of the total were upgraded valuations.
Analyses relating to other asset classes saw an improvement in valuations of 6% of the total. This section included analyses of commodities, currencies and sentiment.
Of the valuations, 21% were above average in the short term. 53% were above the long-term average of valuations. Last week they were 28.68% and 48.06% respectively.
