The main indices of Wall Street They bounced strong This Monday, June 16, since the oil prices They backed away after Attacks between Israel and Iran did not affect production or oil exportscalming investors concerned about the possibility that the most expensive energy envives inflation.
Crude prices fell more than 1% for the expectation of a truce between Israel and Iran after days of missile attacks, after Tehran asked the president of the United States, Donald Trumpthat Fire in the air war for a stop. Although, the prime minister of Israel said his country was in the “path of victory.”
In that context, the S&P 500 climbed 0.9% to 6,033.11 points, while the Dow Jones climb 0.8% to the 42,515.09 points. He Nasdaq won 1.5% to 19,701.21 units.
Oil prices had shot more than 7% on Friday after Israel began bombing Iran.
Tehran asked Qatar, Saudi Arabia and Oman to press Trump to use his influence with Israel to agree on a high immediate fire, in exchange for Iran’s flexibility in nuclear negotiationssources told Reuters.
“The wild card is really what is going to happen to oil prices (…) Any small geopolitical movement can have quite large impacts in that sector and in this economy too,” he said George YoungPortfolio de Villere & Co.
“In cases where the consumer gets nervous about inflation and does not spend, well, that will have a direct impact on profits, it doesn’t matter in what sector of the economy you have inverted,” he added.
Fed meeting
Attention will also be focused this week on the decision of the Federal Reserve About the interest rates that will be announced on Wednesday.
The market is betting that there will be virtually any possibility of reducing the type of types of the 4.25% to the 4.5% and will leave the unchanged types the cost of loans and there are not many perspectives for it to occur in July.
“The Committee (FED Market Federal) will publish a new set of economic forecasts, and we hope that the ‘points’ of interest rates, which the last time showed an average expectation of two cuts this year, seek instead a single cut this year,” he said Michael FeroliChief of American Economy of JPMorgan.
The markets continue to bet on two cuts before December and consider a first measure in September more likely.
Investors will be attentive to any indication on whether the Fed could be prepared to reduce rates in the coming monthsor if the chaotic commercial policies of the Trump administration will prolong the current “wait” position.
It is a week occupied for central banks in general, with the Bank of Japan which is expected to maintain its position on Tuesday, as well as the Bank of England and the Norges Bank Later in the week.
It is likely that the RIKSBANK of Sweden cut the rates, and the Swiss National Bank I could return to the negative rates given the strength of the Franco.
The market expects key data to know how the US economy follows
Data on retail sales in the United States on Tuesday will also be an obstacle, since a Relations in the automobile sector could drag the main data downwardalthough underlying sales rise.
Thursday is a holiday in the US, so Wednesday Weekly figures for unemployment subsidy applications will be published.
The main Wall Street indices fell on Friday after a series of air attacks between Israel and Iranincreasing tensions and affecting market confidence. Defense actions rose after attacks.
The prices of oil They got shot 14% On Friday, although they closed with increases of 7%, promoting energy actions, but harming airlines that face the perspective of higher fuel costs.
Even so, relatively benign inflation readings and stable figures for weekly unemployment applications some concerns of investors relieved on the impact of broad American tariffs on economic activity.
The G7 Summit starts
He Group of Seven industrialized countries meets Canada During the next few days, in what could be a tense encounter given the movements of the US president, Donald Trumpto impose tariffs on your allies.
The Canadian Prime Minister Mark Carnypresiding over the summit, said that its priorities are strengthen peace and security, Build critical mineral supply chains and create jobs. So and everything, it is expected that issues such as American tariffs and the Conflicts in the Middle East and Ukraine Have an outstanding role during the summit.
Source: Ambito
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