Market Insight

Simon Alagbe

Analyst

The equity market continues its recovery as investors’ expectations became tempered on the scale of rate hikes from the Federal Reserve. Market participants were previously fixed on a 75 basis point hike from the Federal Reserve at the next policy meeting but falling oil prices and a decline in the inflationary pressure as confirmed by CPI and PPI data released last week from the US. changed the narratives. 
I envisage a decline in inflation to increase consumer confidence amidst a rapidly growing Labour market in the United States.

The haven greenback has all going for it after a series of disappointing data from China earlier today fueled worries of a global scale recession. The People’s Bank of China unexpectedly cut its key interest rate at its policy meeting earlier today to support an economy that a series of Covid-19 lockdowns and downturns in property prices have pressured.

I expect this development to benefit the greenback and still act as an impetus to further recovery for global stocks.


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