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EBC Markets Briefing | European and US stocks zoom to record highs

Wall Street's three major indexes notched record closes on Wednesday with the S&P 500 the Nasdaq 100 both advancing more than 1%. Technology stocks led the charge following an encouraging CPI report. Other data released showed retail sales were unexpectedly flat in April as higher gasoline prices pulled expenditure away from other goods, indicating that consumer spending was losing momentum. US stocks have rallied so far this year on buoyant first-quarter earnings and expectations that the Fed will be able to achieve a soft landing and eventually transition to cutting interest rates. There were also positive signs on price pressures across the pond. The EU said that it estimated inflation to drop faster this year than expected as the impact of Red Sea trade disruption appeared overblown. The region’s Stoxx 50 rose 0.4%, registering the eighth day increase in the past 9 trading sessions. The problem is that Europe’s economy has been slower than China and the US to rebound from the pandemic. Many European countries are still faced with weak productivity as well as low levels of investment, high energy costs, ageing populations, shrinking workforces and falling working hours. The DAX 40, the FTSE 100 and the CAC 40 all set new all-time highs overnight. Germany's benchmark index looks overbought according to the RSI reading – a sign of correction, with support from 50 SMA. EBC Group Brand Influence Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC Group or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

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Investment involves risk. The content of this report is not an investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product.

Publication date:

2024-05-16 06:38:49 (GMT)

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