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We are waiting for inflation again! What will the week bring?

We are waiting for inflation again! What will the week bring?

created Forex Club13 May 2024

We start the new week in a positive mood once again. The best example of this is the record level on the DAX or the very large market recovery in China. All this despite further signals about a possible inflation rebound. Will the bull market continue despite these negative indications?

We are waiting for inflation again!

It is the topic of inflation that should be in focus in the coming days. Data from the American market are disappointing. This is mainly due to increases in the prices of rental, fuel and transport services. However, despite these unfavorable readings, there are positive indications that can fuel the bull market. Prices are definitely like that crude oilj, which are at their lowest level in weeks. Moreover, in the coming months we should see slightly lower dynamics of rental prices. However, please remember that this is the effect of a very large database. Nevertheless, the market looks positively at the situation of American inflation and believes that the Fed will reduce interest rates. This, in turn, is a catalyst for further increases in the indices. There will be more important events from the US in the coming days, and above all, attention should be paid to Tuesday's speech by Jerome Powell and Wednesday's CPI report for April.

The current positive market sentiment is best demonstrated by the next installment of the "earnings season" in the US. The winner of last week was Arista Networks, which once again showed better-than-expected results. Additionally, a large share buyback was announced, which was very well received by investors. However, even despite rising indexes, there were companies that disappointed investors, and the best example of this is Walt Disney. Shares of the global entertainment giant fell by almost 10%. after highly disappointing results and future forecasts.

In today's webinar:

  • Will the second wave of inflation become a fact?
  • What data is crucial for the US economy?
  • Does “earnings season” extend the bull market?

About the host

industrialists of flowersDr 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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Forex Club
Forex Club is one of the largest and oldest Polish investment portals - forex and trading tools. It is an original project launched in 2008 and a recognizable brand focused on the currency market.