After a difficult year for world stock markets, it’s time for a clean slate. Probably the first session of the year will start with slight ascentsas indicated by futures in Europe.
However, the context has not changed and the risks are still very present in the form of still uncontrolled inflation, war in Ukraine and economic recession.
Resistance at 4.050
From a technical point of view, “the European indices closed the last session of the year, continuing with the consolidation phase born on the highs of three weeks ago, which were the ceiling of the strong rise that began in mid-October”. , explains Joan Cabrero, Ecotrader consultant. “This consolidation should serve to purge the accumulated overbought after a ten-week rally that took the EuroStoxx 50 from 3,250 to 4,035 points, very close to the key resistance of 4,050 points, which is what I have told you on numerous occasions that must be overcome to ward off the downside risks of seeing a decline to 3,000 points, which is where it was quoted before the Pfizer vaccine appeared on the scene,” he adds.
“Overcoming this resistance of 4,050 points are the duties still pending for this year 2023 and would pose a more bullish lateral scenario towards targets at 4,400 points, than a bearish one towards 3,000”, he concludes.
Fixed income aims to start the year on the upside
Another of the market hot spots this start of the year will be seeing how fixed income performs. If, as many experts think, we have already seen the worst, from now on it will be an asset whose prices will push up again, reducing the required yields on debt. However, if it doesn’t, it will continue to be penalized by rising interest rates and inflation rates. In the first session of the year futures indicate purchases.
Michael Burry: ‘The US is in a recession’
Legendary investor Michael Burry explained on his Twitter account yesterday that no matter where you look, “the US is in a recession.” “Despite the fact that price increases have peaked, government stimulus will promote another rise in inflation,” he stressed.
