Worries and opportunities [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

China’s latest efforts to convince investors that it will boost its economy with great stimulus measures had the same reaction than the previous ones: disappointment. The Chinese yields nosedive but the shares don’t react. Except one bright spot: Xiaomi.

Elsewhere, in Korea, the political turmoil continues to weigh on sentiment, while in France, the relief on the appointment of Francois Bayrou – another very established name in French politics – to replace Barnier as the new French PM was clouded by Moody’s downgrading the French credit rating to Aa3 – three levels below the top. Nearby, German politicians will hold a confidence vote to pave the way for a February snap election. So, the bets that the European Central Bank (ECB) must do the heavy lifting remains strong after last week’s cautious 25bp cut.

Across the Channe, Cable is slightly better bid this morning, while the USDJPY is gaining traction to the upside. Both the Bank of Japan (BoJ) and the Bank of England (BoE) could leave the rates unchanged, but there is a chance that the BoJ opts to hike.

In the US, the Federal Reserve (Fed) is expected to trim its rates by another 25bp when it meets this week.

The S&P 500 closed last week near record while Nasdaq advanced to a fresh record high on Friday. This time, it was Broadcom’s turn to shine. The company’s stock price jumped 24% to a record high on Friday after announcing better-than-expected earnings and saying that it expects a booming demand for their custom-made AI chips.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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