HomeContributorsFundamental AnalysisWeekly Focus: Stock Sell-off is Mostly Technical But Watch Inflation

Weekly Focus: Stock Sell-off is Mostly Technical But Watch Inflation

Market movers ahead

  • Inflation expectations are moving higher in the US but we expect CPI data for January to show that core inflation remains subdued.
  • UK inflation data will also be important, as the Bank of England may increase rates as early as May.
  • We expect the Swedish Riksbank to maintain its confident stance on the economy and inflation at next week’s monetary meeting, even though we see major risks to both.
  • Norges Bank Governor Øystein Olsen delivers his annual address, where he is likely to touch on the strengthening economy and fading risks in Norway.

Global macro and market themes

  • We view the sell-off in stocks as a correction – the upward trend is supported by strong profit growth.
  • Data this week adds to the picture of a robust global recovery underpinning profits.
  • Bond yields are set to increase further.
  • EUR/USD is in a range before the next move higher.

Full Report in PDF

Danske Bank
Danske Bankhttp://www.danskebank.com/danskeresearch
This publication has been prepared by Danske Markets for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Markets´ research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Markets is a division of Danske Bank A/S, which is regulated by FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright (©) Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.

Featured Analysis

Learn Forex Trading