The markets are playing a soft landing. What will the week bring?

Markets continue their New Year's rally - EURUSD overcame another psychological resistance at 1,08 last week, US stock indices fared slightly worse. Strong increases are observed both in the German DE30 chart and in Bitcoin. After two months of declines larger than expected, last week's US inflation report turned out to be exactly in line with the consensus. Total inflation in the US is already “only” 6,5%, but will continue to fall due to the base effect. Like the factors that according to Fed from spring '21 were supposed to be responsible for the transitory nature of inflation, and concerns about the raw materials crisis in Europe have also disappeared.

Markets optimistic

The warm winter on the Old Continent combined with the decline in gas prices in the European TTF hub to a level lower than before the Russian invasion of Ukraine affect the general level of optimism among investors. After December's NFP data, which turned out to be strong, but with lower wage dynamics, the market started play under the optimistic scenario of falling inflation with a strong labor market and positive GDP growth. However, the global PMI index is still below the key level of 50 points - investors, however, expect an imminent rebound in the readings in China and changes in the Fed's monetary policy so far.

We invite you to a meeting with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of this week - the markets are playing a soft landing.

In today's video:

• Is this the end of the energy crisis in Europe?
• Is the Polish stock market overvalued?
• What next for central bank balance sheets?

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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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