This week once again, it looks like bond market action could dominate the landscape. We’ll be hearing from the US Federal Reserve on Thursday night when it’s open market committee meets. While it’s expected there will be no change to interest rates, it’s very likely we’ll hear further words from the Federal Reserve, trying to soothe markets around their concerns with inflation.
Although we’ve had coordinated messaging from central bankers around the globe, bond markets continue to express doubt. The big sell-off that we saw, once again, in US bond markets on Friday is flowing into Asia-Pacific trading at the beginning of this trading week. That’s having a big impact on share markets and there was a big rotation away from technology and other higher growth sectors in trading on Friday night and back towards those blue chip stocks that will benefit from the reopening of economies across 2021.
We’ll also be watching Bitcoin markets very carefully after Bitcoin set a record high over the weekend trading above $61,000 USD and we’re expecting further volatility in crypto markets and potentially other coins setting new record highs, playing catch-up with Bitcoin. We’ll also see a lot of data this week that has the potential to move markets and anything that has to do with inflation or prices could be particularly market sensitive, given that ongoing argument about the outlook for interest rates. There’s a whole list of data that could move the market. To see the full list and analyst forecast for those readings, go to the market calendar on the CMC platform.
Disclaimer: CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.
