Prospects of stock markets in the United States and Europe
2023-02-23
US stocks? Focus on FOMC agenda
European stocks? It is difficult to make a major change in corporate profit forecasts
The S&P 500 fell continuously, and the Dow Jones index fell for three consecutive weeks. Due to the statements of senior officials of the Federal Reserve Board (FRB) and the results of economic indicators, the early observation of interest rate increase in the United States and the expectation of interest rate reduction in the year have both receded, and high-tech stocks such as IT have been sold off. On the other hand, from the perspective of the U.S. economy itself, the closing price of the S&P 500 Index was at a high level at the end of last week, while the economy-sensitive stocks such as general consumer goods and commodity sectors remained strong.
The Federal Open Market Commission (FOMC) announced on the 22nd (January 31 and February 1). And at the meeting, although it was not shown that the premature easing of the financial environment such as the stock price and the yield of national debt would hinder the view of restraining inflation, if it was shown again on the agenda, it might lead to the decline of the stock price, so we need to be vigilant.
Europe 600 Index rebounded. In addition to the purchase of varieties with good final accounts, the rising tone of the high-end brand sector and the automobile industry will continue due to China's economic restart and increased demand. The index once reached the highest level since February 2022, and the CAC40 index of France once reached a record high.
The annual growth rate of the European 600 Index is about 3%, up from last December (1.3%). The expectation of China's economic restart or the city's concern about the excessive economic recession caused by the record-breaking warm winter are moving in the direction of mitigation, but the company is unlikely to feel optimistic, and the company's interests are unlikely to be significantly improved. In the future, European stock markets may realize the importance of the upward trend.