Let’s get straight into this week's price action.
On the data front, US CPI and PPI both printed slightly hotter than expected, a clear reminder that inflation remains a sticky trade. But instead of a risk-off reaction, equities shrugged it off and kept climbing. The market’s takeaway? The data is manageable, and the bulls are staying in control for now.
Meanwhile, the geopolitical risk premium continues to bleed out. Broad tensions are cooling, and a renewed optimism around US-China relations is acting as a solid tailwind for sentiment. During his recent visit, Trump pushed for China to open its doors wider to US businesses, while scaled-back tariffs are already keeping Chinese markets well-supported.
Here is what you need to know about the setups moving into next week…
It is important to remember to assess your financial situation and risk tolerance, before engaging in copy trading. Past performance and forecast are not reliable indicators of future results.
Stocks Rise Despite Firmer Inflation Data
Markets remained resilient despite stronger-than-expected US CPI and PPI figures. Inflation pressures increased slightly, but investors continued pushing equities higher as the data failed to trigger major concern. Sentiment was also supported by easing geopolitical tensions and improving US-China relations following Trump’s visit to China. Traders should also focus on the development of the oil market, which might offer more insights currently.
*Trading involves significant risk of loss.
Equities Supported by Stable Risk Sentiment
Stock markets continued higher this week despite rising inflation data. Investors focused on resilient economic conditions and improving international sentiment. Markets also reacted to the Senate confirmation of Warsh as successor to Powell, with the leadership transition expected to take place next week.
*Trading involves significant risk of loss.
Inflation and China Optimism Support Commodities
Commodity markets remained supported as inflation data stayed elevated and China sentiment improved following tariff reductions. Oil prices stabilized amid calmer geopolitical conditions and rebounded from the 50-day moving average on the daily chart. Metals reacted to ongoing inflation expectations and movements in the US dollar.
*Trading involves significant risk of loss.
Dollar Stable as Markets Assess Fed Transition
Currency markets stayed focused on inflation data and upcoming Federal Reserve leadership changes. Warsh was confirmed by the Senate as Powell’s successor and is expected to take office next week after completing the required asset sales. Markets continue monitoring the implications for future monetary policy.
*Trading involves significant risk of loss.
