US Inflation and Unemployment: What does the new data mean for global markets?
Hello Project HOPE friends, I hope you are doing well. Today they have given interesting and shocking news for the market, and it has to do with the Inflation data in the United States, and knowing that everything that caused the interest rate increases to the levels that we can see today was precisely inflation very high.
We recently saw that the FED or central bank of the United States decreased the interest rate, because inflation has improved, that is, it has decreased considerably, but today's data was not good, so it can surely have an impact on the markets, since inflation rose slightly, and that is not good in the face of upcoming presidential elections and a probable drop in the interest rate.
Not only that, but additionally the unemployment benefit application data came out high, well above what was expected. This means that unemployment increased, since it is an indirect data of unemployment.
But with this data, what can we expect? Above all, it is something that those who operate with American indices such as the US30, the Nasdaq or the SP500 can take advantage of, since they are the ones that will be most directly affected. However, we can notice that others Indices, such as the GER40 (German Index), are also affected by what happens in the North American markets.
And in general we must say that the markets can react downwards with these data, because they are not good for prices or for the circulation of capital, but all we have to do is wait, be patient.
Because we must also consider that we are already in the last quarter of the year, which is generally bullish for the markets, due to the Christmas rally, as well as the presidential elections, which we know that the candidates, both the one who is choosing to occupy The presidential position, as well as the one who is president, needs a positive environment in the markets so that there is a greater chance of his party winning.
In short, if someone wants to enter the markets it must be through their total responsibility, since this post is only an opinion, and not financial advice. I say goodbye.
There is a massive rate of unemployment that is rising which for my own understanding I believe should not be so. Probably something really needs to be done to it before it is too late
You are right: unemployment is a very big problem which every country is facing. And today you have written a very good post on this