Premature optimism in the markets. What will the week bring?

Last week we closely watched the situation overseas, because not only could we follow the publication of the Non-Farm Payrolls report, but we also had the opportunity to listen to what Jerome Powell had to say about the current macroeconomic situation in the United States. The Fed chairman confirmed a slowdown in the pace of interest rate hikes since December, explaining that this will help in further assessment of the situation. Although the level of inflation remains too high, it is Federal Reserve sees encouraging signs of a slowdown in price growth.

Premature euphoria?

However, the markets go much further assuming a consistent decline in inflation and the expected one pivot Fed. In effect, S&P 500 index was at its highest level since Sept EURUSD it has probably permanently returned above the level of 1,05. US economic activity indicators are catching up Europe, pointing to the continuing slowdown in the US. Investors, however, are not too concerned about this as they expect it to lead to a quick one pivot the Fed and even interest rate cuts. The situation on the charts is saved not only by the current optimism of market participants, but also by the expected increase in the average profit recorded by American companies. The curve now forward P/E returned to the historical average. How will the valuations of American companies react to a possible economic slowdown?

We invite you to a webinar with the Chief Economist XTB Dr. Przemysław Kwiecień, in which he will focus on the key topic of this week - are we seeing premature optimism in the markets?

In today's video:

• What did Powell say?
• What next for the annual results of American companies?
• What do we know about QT?

WATCH ON-LINE

In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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