The European and US markets are rapidly progressing, shedding all the worries from the previous week’s price action.
Traders are eager to seize bargains, while others maintain the belief that the current market rebound could be merely a false positive, necessitating caution.
Smart money prioritizes the significance of this week’s important data and bases its decisions on it.
Stock Market Today
European markets have started the trading action on a positive note. The is neutral, the soared 0.42%, and the IBEX (NASDAQ:) declined by also moved into positive territory by 0.54%.
All of these gains have been accurate at the time of writing. However, what is important to keep in mind is the weekly losses that these indices are sitting on, such as the Stoxx 500, which closed the week with a loss of 2.9%, while the FTSE 100 wasn’t that off from that number.
Important Economic Data Points
Traders and investors are focusing on the positive aspects this week, anticipating the release of significant economic data from the UK, where the Bank of England has initiated the process of interest rate cuts.
The inflation data that will be released this week will give them more clarity in relation to the future direction of the interest rate. If the data continues to indicate a cooling off in inflation, the Bank of England may express more optimism, potentially leading to more interest rate cuts.
However, if the data doesn’t demonstrate a significant positive trend, it could lead to significant market panic. This could lead investors to believe that the Bank of England will hold rates for a longer period or that the next rate cut could be delayed.
We will also be receiving data on inflation in the US. The number is extremely important. On Wednesday, we will release the US numbers, with a forecast for the headline m/m of 0.2%, compared to the previous number of 0.1%. The forecast for the CPI m/m was 0.2%, whereas the previous number was -0.1%.
This week’s release of the inflation number, according to Connor Woods, Financial Analyst at HowToTrade.com, will set the tone for the…
..
