Ipek Ozkardeskaya
Swissquote Bank Ltd
US equities recovered for the second session on Monday, after a 10% selloff brought the S&P500 to the limit of the correction zone last Thursday. But optimism looks vulnerable as the OECD lowered its growth forecasts on Monday, pointing at tariffs, the global trade restrictions and uncertainties as the main cause of slower global growth, and warned of higher inflation.
The Federal Reserve (Fed) begins its two-day policy meeting today with soft but not collapsing employment and sales data, softer-than-expected but still near 3% inflation, and a high level of uncertainty and tariff-led volatility in its hands. The Fed is expected to maintain its rates unchanged. The dot plot and Powell’s press conference will be closely watched by investors.
Elsewhere, the Bank of Japan (BoJ) is also expected to maintain its rates unchanged when it announces its decision tomorrow.
Although the rising borrowing costs and the stronger yen weigh on the Japanese stock valuations, Warren Buffett increased his stake in 5 of Japan’s leading names: Marubeni, Mitsui, Mitsubishi, Sumitomo and Itochu.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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