US and European futures are trading with caution today as investors will be looking for more clues from the Fed this week in relation to their monetary policy. No doubt that there has been confusion among investors and traders after the recent drop in the US inflation. The Fed doesn’t need the same monetary policy stance they had in their previous meeting, as inflation is clearly showing a slowdown in its momentum. However, other Fed members like James Bullard believe that the Fed has yet to reach its peak with respect to its monetary policy; hence there is still plenty of room to push the interest rate curve further.
However, when we look at the US stock indices and pay attention to the price and the price only, it does appear that the US stock market could be in the final stages of the bear market as there are several signs that are indicating that the bear market has come to an end and bulls are building up the momentum. In addition, despite several concerns around the US economic data, the economic numbers continue to show that the US economy is faring much better than many have anticipated. This is certainly another encouraging sign for traders and investors.
As for the week ahead, the trading action will be short this week due to the Thanks Giving holidays. The FOMC Minutes, slated to come in Wednesday, will be the main event for the US economy. Again, a clear message from the Fed will certainly help the sentiment, and we may see further strength for the US stock market. However, it is essential to keep in mind that throughout the current earnings season, if we have heard one clear message, it is that these companies have reduced their headcounts, and in addition to this, they have frozen the process of hiring. This particular element will keep the situation somewhat challenging for the US stock market.
Bob Iger is back; this is all investors need to know regarding Disney stock. The board has decided it is time to bring him back immediately and let him use his vast experience to help the money in this difficult period. For investors, this is excellent news as they know that Bob Igor not only commands the best skills but also has superior knowledge to shape the company under the current challenging times when everyone is thinking about spending and recession.
Gold prices are retracing further from their recent highs as investors continue to book more profit from the recent rally. It is the dollar index’s strength pushing the dollar index lower. The precious metal has failed to move above 1,800, which shows that there s so much resistance around this level which is stopping the price from further appreciation. In terms of the price action, we really need less dollar strength, which could help the price of the shinning metal move higher.
BTC and Ethereum had another tough weekend. More details were released in terms of FTX’s liabilities, and the market players are still very much sensitive to the FTX news. Traders are concerned about another domino effect, but for now, traders are optimistic that the worst is behind us to a certain extent. The dollar strength and the adverse FTX new flow will still determine the price of BTC, and traders know that they have to respect the price action.