(News Bulletin 247) – The publication of core inflation emerging at a slower than expected growth rate will have brought relative relief to the markets. In particular, the Nasdaq Composite index, very densely represented in growth technology stocks and by nature very sensitive to the bond markets, limited its decline to 0.30% yesterday, at 13,371 points. In detail, the consumer price index, in data core (adjusted for food and energy, highly volatile data), gained 0.3% in March, month-on-month. So much for core inflation. On the other hand, taking into account the largest basket of products, monthly growth is 1.2%, in line with expectations. What to pass the Treasuries 10 years from 2.85 to 2.75, without significantly reducing the probability of seeing the Fed raise its Fed Funds by 50 basis points from the next FOMC.
“In the United States, the Fed’s being forced to tackle the risk of runaway inflation has upended the traditional practice of bailing out markets and rushing to the rescue of the economy at the first sign of strain,” comments Steen Jakobsen, Chief Economist and Chief Investment Officer at Saxo Bank. “In short, the Fed’s accommodative monetary policy is much less effective today than it was a year ago: the Fed needs to take the lead.”
To follow in the statistical chapter, the American stocks of crude oil at 4:30 p.m. In the immediate future, operators have just learned of the producer price index, which came out very clearly above expectations for March, in basic or underlying data. On a month-on-month basis, producer prices rose in their widest base by 1.4%…
KEY GRAPHIC ELEMENTS
The very short-term technical framework has just realigned itself with the medium term in the red, with an immediate work zone reintegrated between 13,330 points and 13,838 points. A breach of this last threshold would cause an accelerating selling movement towards 12,640 points. Volumes are more than ever put under surveillance.
FORECAST
In view of the key chart factors that we have identified, our opinion is neutral on the Nasdaq Composite index in the short term.
We will take care to note that a crossing of 13838.00 points would revive the tension in the purchase. While a break of 12640.00 points would relaunch the selling pressure.
CHART IN DAILY DATA
©2022 News Bulletin 247
I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
