Future predictions for the stock market
2023-06-22
■U.S. individual stocks: Watch stock prices react to comments from senior Fed officials
■European stocks: corporate performance is stagnant, is there limited room for stock price growth
The Dow Jones average is 3 weeks, and the S&P500 is 5 consecutive weeks. In addition to the U.S. consumer price index (CPI) showing that inflationary pressures eased in May, U.S. retail sales in May suggested that personal consumption was solid, the uncertainty about the economic outlook subsided, and the tone of stock appreciation continued. The US Federal Open Market Committee (FOMC) showed that the forecast of additional interest rate hikes this year caused the stock price to plummet, while the S&P500 remained at 4,400 points for the next week.
Even if extra profits are made in the market, a serious economic deterioration from what is believed to be avoidable has spread to scouting, such as economically sensitive stocks, which is later. This week, there are many opportunities for senior Fed officials to speak, including the congressional testimony of the chairman of the US Federal Reserve (Fed) (the House of Commons on the 21st and the Senate on the 22nd).
The Euro Stoxx 600 rebounded. In addition to the gains in U.S. stocks, a cut in China's short-term interest rates led to a wider view that a revival in consumption in the country would help improve European corporate performance. The European Central Bank (ECB) reiterated its hint of further rate hikes after the council decided to raise interest rates by 25bps, but expectations of additional economic stimulus measures in China pushed up the stock price over the weekend. The German DAX index refreshed its highest value in history and surpassed the week.
With the strong concerns of economic slowdown in Europe, the market began to show a downward trend in China's economic outlook. Expectations of Chinese authorities' economic support policies will be support for European stocks, but the expected earnings per share (EPS) growth rate of the Stoxx Europe 600 index in the coming year is only 3.8%, and the current share price upside is limited.
■European stocks: corporate performance is stagnant, is there limited room for stock price growth
The Dow Jones average is 3 weeks, and the S&P500 is 5 consecutive weeks. In addition to the U.S. consumer price index (CPI) showing that inflationary pressures eased in May, U.S. retail sales in May suggested that personal consumption was solid, the uncertainty about the economic outlook subsided, and the tone of stock appreciation continued. The US Federal Open Market Committee (FOMC) showed that the forecast of additional interest rate hikes this year caused the stock price to plummet, while the S&P500 remained at 4,400 points for the next week.
Even if extra profits are made in the market, a serious economic deterioration from what is believed to be avoidable has spread to scouting, such as economically sensitive stocks, which is later. This week, there are many opportunities for senior Fed officials to speak, including the congressional testimony of the chairman of the US Federal Reserve (Fed) (the House of Commons on the 21st and the Senate on the 22nd).
The Euro Stoxx 600 rebounded. In addition to the gains in U.S. stocks, a cut in China's short-term interest rates led to a wider view that a revival in consumption in the country would help improve European corporate performance. The European Central Bank (ECB) reiterated its hint of further rate hikes after the council decided to raise interest rates by 25bps, but expectations of additional economic stimulus measures in China pushed up the stock price over the weekend. The German DAX index refreshed its highest value in history and surpassed the week.
With the strong concerns of economic slowdown in Europe, the market began to show a downward trend in China's economic outlook. Expectations of Chinese authorities' economic support policies will be support for European stocks, but the expected earnings per share (EPS) growth rate of the Stoxx Europe 600 index in the coming year is only 3.8%, and the current share price upside is limited.