Last week, global markets closed on a minor note, as labor market data from the United States was worse than expected. Over the weekend, the list of negative news grew to include an increase in the inflation rate in China, which also surpassed market participants’ expectations. Thus, if the market fails to deflect the downward trend during today’s trading session, a decline in the first half of the week is inevitable.
At the same time, we should not overestimate the actual content of the negative news: we do not rule out the possibility that players’ reaction has been excessive and that the cost of risky assets has fallen disproportionately to the situation. However, so that this point of view has the right to exist, futures on the S&P 500 Index should rise above the 1,380-1,385-point spread during today’s trading session. The next opportunity to change the market direction should be the publication of U.S. banking quarterly reports at the end of this week.
