The fed's rate path. China sets the bar low
better vibes in Europe here. Three things to watch
in global markets. The fed says it's waiting for
the data to determine how much more to raise interest
rates, which means investors will remain obsessed with positioning
for and reacting to every economic release. Like the
monthly jobs report, they're seeking clues on whether wages
will cool and prices for consumer services beyond housing will
slow their descent or are at risk of accelerating.
Either way, inflation is still too high for the
fed to pause on its rate hike campaign. China
plays it safe. The government set a 5% growth
target this year less ambitious than what outside economists anticipated
. It's also slower than the 5.5% goal set last
year which Beijing missed because of its COVID zero policy
. What this means is policymakers plan to avoid large
stimulus efforts and are more focused on maintaining economic and
political stability. Data on retail sales and the services
sector are expected to show a consumer led recovery is
already underway. All the recession talk in Europe and
the UK has yet to materialize into actual recessions.
If anything, the vibes are improving as a mild
winter in Europe's and energy prices down while businesses stay
productive and factories increase output. Consumer confidence in the
UK has rebounded off two year lows and the stock
600 is outperforming the us. As many investors say
European stocks offer better value and will benefit from China's 00:01:32.750 --> reopening.