► Global markets showed signs of steadying after a turbulent start to 2024. Stocks and bonds try to find a bottom from a two-day selloff, with the European Stoxx 600 climbing near 0.4% and the US stock futures indicating a potential reversal after the recent selloff. The 10-year US Treasury yield dipped slightly yesterday, but has already stabilized and shows signs of rising further. Our head analyst Robert Lindner says that stocks will react sensitively on yields. If yields continue to rise, pressure on stocks, in particular growth / rate sensitive stocks will rise again.
► In Europe, we see some positive news from Next, a British retailer, whose shares jumped over 5% after another profit forecast upgrade. Overall, European stock futures showed resilience, rebounding from initial losses triggered by the Federal Reserve meeting minutes. France's inflation rate increased to 3.7% in December, indicating a rise in energy and service costs. Markets await the release of German inflation data later today (13:00 UTC+0)
► In the US, all eyes are on the upcoming US jobs data set for release on Friday. The data is anticipated to provide further insights into the Federal Reserve's interest rate trajectory. Yesterday's FOMC minutes indicated that high interest rates might persist, with Fed officials noting significant uncertainty in the economic outlook. The minutes also showed again the discrepancy between the markets rate cut expectations and what the Fed expects to do.
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