Stock markets have seen a slowdown this year, following a series of high-intensity bullshit trends over the past two years. One of the main reasons for the depression in stock markets is that the central bank has turned into a falcon and is operating too fast. The Bank of England has raised interest rates twice in the last two sessions, and the FED is preparing to raise interest rates at this month’s meeting, Chairman Paul comments below said yesterday.
The ECB also said that after the CPI (Consumer Price Index) report yesterday, the fallout is changing, as is inflation in Europe as well – last month, the report showed an annual increase of 5.7%. When we think of the cash flows in the stock market by the central banks during these times, it is puzzling whether they will continue to trend, especially now that all that money is drying up.
Top News from the Chairman of the Federation Paul
- The US economy is very strong. The labor market is very tight.
- I still think it is appropriate to increase the interest rate by 25 points in March
- The Fed will not finalize its accounting plan at this meeting.
- If inflation continues, we will be ready to move even harder by raising the 50 points. At a future meeting or meeting
- Given the war in Ukraine, the federation must be smart.
- Inflation is different because it comes from the commodity sector.
- The Federal Reserve is working on a policy to return the United States to price stability while maintaining the expansion process.
- Fed is humble because he cannot confidently call inflation.
- As a result of the Russian sanctions, there will be no direct impact on the US economy
- The price of oil depends on the location of the Ukraine war
- In accounting, it takes three years to reach the destination
- After setting up a ledger reduction course, we can accelerate or slow down, but something is within the three-year range.
- I expect the federation’s budget to increase in two weeks, and this year’s series of walks, but we will proceed with caution in light of the situation in Ukraine.
- The neutrality ratio is between 2% and 2.5%
- What we are talking about is to reach a neutral level of 2% to 2.5%, and then it could go up.
- Monetary policy works as expected, inflation has already taken effect, and we must approve it
- Housing increases are small and often a function of supply and demand.
- As we increase interest rates, mortgages increase, prices rise sharply, and demand decreases
S & P500 Index Daily Chart
S&P is already trying to be bully.
Another depression in stock markets comes from the Ukraine crisis, which is weighing more heavily on European stocks than the US. As a result, US stocks are currently performing better than European stocks. The major U.S. indexes hit a record high on bond and oil and commodity prices yesterday and closed sharply.
- 596 points or 1.79% as 33,891.36
- S&P rose 80.26 points or 1.86% to 4,386.53
- Nasdaq rose 219.57 points or 1.62% to 13,752.03.
- Russell 2000 to 50.36 points or 2.51% at 2,058.87
The S&P500 has changed dramatically, and is currently experiencing a 200 SMA, which will be the real test as shown in the chart above, the German DAX30 index continued to decline again this week after trying to move higher last week. As long as tensions remain high in Ukraine, bearish pressure will dominate European stock markets.