From NASDAQ:

Nasdaq’s IR team provides a daily curated roundup of markets and the economy. Subdued equities tone expected this week as interest rates become primary market drivers. Concentration risk, rising inflation expectations, and concerns over market technicals are key issues highlighted by Piper Sandler, Barclays, and Deutsche Bank.

Market technicals are looking stretched, with narrow breadth signaling possible upside hinges if the rally broadens. Investors are entering strong positioning territory, suggesting further bullish sentiment in 2024. Concerns about near-term inflation persist, driving shifts in market expectations of Fed rate cuts from 7 to 3 this year.

Geopolitical issues like Russia’s global trade realignment and concerns about concentration risk and commercial real estate have sparked worries among investors. Notable upticks in market expectations regarding near-term US inflation may influence market shifts. Bitcoin’s performance is closely linked to investor risk appetite, signaling bullish sentiment among investors.

Large cap mutual funds analysis by Goldman Sachs reveals that lower costs and better performance favor passive over active strategies. Resilient macroeconomic conditions, positive US earnings season, and concentrated positions in investor portfolios indicate potential for bullish sentiment to meet further support.

Equities and Treasury yields see a decline this week, while the dollar strengthens. Inflation data, ISM Manufacturing, and other economic indicators in focus with corporate earnings from Berkshire Hathaway, Salesforce, and Dell anticipated. Consumer confidence falls in February due to concerns over labor market conditions and US political environment.

The European Investment Bank’s green makeover initiative in synthetic risk transfer and House Committee’s inquiry into ESG pledges highlight growing trends in sustainable finance. Concerns over labor market conditions, political environment impact consumer confidence in February. Earnings season and economic indicators anticipate focus. ECB, New Zealand, global economic soft landing chances addressed in macro-level news. Market developments view trend in oil demand, property sectors, and impact of new sanctions on Russian oil sales. Oil product stocks rise as market remains comfortable at current prices. Trans Mountain pipeline maintenance schedule updated.



Read more at NASDAQ:: PCE Inflation Reading, Subdued Tone in Equities This Week