Global equity and fixed-income markets are entering a period of heightened volatility as traders brace for a dense schedule of US economic data.
The recent rally, fueled by optimism over peace prospects and declining oil prices, has lost momentum as attention shifts to fundamental indicators that will shape the Federal Reserve’s policy path.
Kevin Lings, chief economist at Stanlib, noted that the market’s focus has pivoted sharply from geopolitical narratives to hard economic data.
The week’s calendar is headlined by the release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge.
This will be accompanied by global Purchasing Managers’ Index (PMI) readings and a crucial revision to US Gross Domestic Product (GDP) figures.
These data points are expected to provide clarity on whether inflationary pressures are truly abating or if sticky price growth remains a risk.
Kevin Lings, chief economist at Stanlib, noted that the market’s focus has pivoted sharply from geopolitical narratives to hard economic data.