Markets: there is optimism, but it is weak and the reasons are in the US

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There are conflicting signals from the markets: whether Asia, with China still closed, gains in the US, sentiment is more uncertain. The earnings season is showing several weaknesses.

THE markets launch several signals in the session of Wednesday 25th of January and looking to the night of Wall Street.

The asian stocks to seven-month highs, with some regional markets reopening after holidays (China and Taiwan still closed) and the Australian dollar reaching multi-month highs, with rising inflation making it likely that the interest rate.

However, US stock indexes ended up mixed, with some companies posting better-than-expected profits, warning of a challenging 2023. The data showed that business activity in the U.S contracted for a worrying seventh straight month in January.

There is still not complete optimism about global markets and prospects. And the reasons are in the USA.

All signs from the markets: less US optimism?

With Asian plazas still partially closed, as in Chinafor the Lunar New Year, global trade is limited.

In Asia, Japanese equities rose in tandem with the yen’s decline, while Australian equities erased morning gains as inflation accelerated to the fastest pace in 32 years. New Zealand data also showed that consumer price growth hovered near a three-decade high, giving traders reason to question global optimism that theinflation it’s really on the rise. South Korea’s Kospi index rose more than 1%.

Meanwhile, I US stock futures they travel on red. Globally, equities have posted strong gains this year after a difficult 2022 on expectations that inflation is slowing and rising US interest rates will ease. The dismantling of Covid controls in China and the reopening of its borders further boosted investor sentiment.

However, there are still mixed signals. The Microsoft stock they gave up most of their 4% gains recorded in after-hours trading. The tech titan’s better-than-expected results showed some strength in the face of a weak economy but fragile growth. revenues signaled more difficult times for the sector. The software giant beat earnings estimates, initially sending its stock soaring, but later earnings were quickly wiped out by the warning to its development business. cloud computing.

It should also be noted that theEUR approached the nine-month high of $1.0927 over the course of the dollaras the single currency’s bulls were buoyed by a more upbeat growth outlook for the eurozone against signs of a recession that hangs over U.S.

Source: Money It

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