Global markets face mixed signals as key economic data awaits release
Date
1/7/2025 12:34:39 AM
(MENAFN) Global markets began the week with varied trends as investors await the release of critical economic data from major economies, including the US, UK, Germany, and the Eurozone.
Lingering uncertainties surrounding the trade and economic policies of the re-elected US administration continue to cast a shadow over the global economy, heightening concerns about a potential recession.
Economic indicators from major regions suggest that inflation and recession fears are increasingly influencing market valuations. The release of US employment data this week is expected to shed further light on the state of the economy.
In the US, apprehensions remain about the inflationary effects of protectionist trade policies under President Donald Trump. These concerns are a significant factor in the Federal Reserve's (Fed) ongoing policy deliberations.
The Fed is anticipated to implement only two interest rate cuts in 2025. The upcoming Federal Open Market Committee (FOMC) meeting minutes, set for release on Wednesday, will provide additional clarity on the central bank's policy trajectory.
Richmond Fed President Tom Barkin remarked on Friday that the US economy is currently in a “good place,” allowing the Fed to adopt a cautious approach to monetary policy.
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