What to expect from the markets next week
The main market movers next week will be the hearings of the president of the F.and Jerome Powell next Wednesday in the Senate and Thursday in the Housethe data on US home sales on Tuesday, to understand how the real estate market is doing Stars And Stripes ei SMEs Europeans and Americans next Thursday, which will anticipate the economic trends of June. Friday June 26, the college of EU commissioners, exceptionally set at the end of the working week, he will decide whether to give a green light to the status of EU candidate for Ukraine. Then the final decision will be up to the European Council, probably at the summit at the end of June. In short, it will be an interesting week but less intense than that just spent.
“In the coming months – he observes Vincenzo Bova, strategist of Mts Capitalservice – bond yields in Europe and the US will continue to be high but without going up at breakneck speed. A reversal is hard before September, in in the meantime I foresee some lateral movements, that is, a fluctuating bond market until data arrives showing slowing inflation and weaker growth. But we’ll have to let the summer pass. To that point, probably to Septembera reversal will be possible lower rates, not before“.
“For a few months – adds – I markets will pull a little bit the breath, they will be able to bounce a little but without going too far. The bags are in ‘bear market’ and they will stay there, which means that between now and the end of the year any bounce will be used in the long run to sell. “In practice, the trend is bearish, so the market goes up and down but will never grow that much and when it will go down will make new lows. It is the opposite of the ‘bull market’, in which the market fluctuates, it can descendbut little and when it rises it does so to new highs.
“In 2022 – concludes Bova – the market will tend to have a downward trend, that is, it will go down always making new lows. This does not mean that there will be no rebounds, indeed I do not rule out that next week there will be S&P returns to 4,000, but inevitably then it will start to go down and make new minsthe. The trend is that and that is because there is a combination of factors that is bad for the markets and in particular for the stockthat is an economy that slows down strongly, central banks more and more restrictive and less and less liquid assets“.
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