The Chief Strategist: A good week ahead

January 07, 2019
Chief Analysist Kim Fæster gives a brief summary of the most important events on the financial events this week:
  • Will investors shake off nervousness?: Stock prices have risen since Christmas Eve. The problem is simply that investors are nervous about large fluctuations. So we are watching what triggers these massive price increases. We believe that the strong job report and the soft messages from the FED will make the stock market perform well this week.
  • Trade negotiations between USA and China: We are starting to see some positive progress. There is a US trade delegation going to China today to negotiate Monday and Tuesday. One should not expect any breakthrough, but it is positive that they meet face-to-face to negotiate further.
  • FED minutes and announcements from FED people: On Friday, Powell was out with good news for the investors. If growth starts to slow down, or the stock market begins to decline sharply, he says they may want to stop raising interest rates. We would like to hear this repeated by some of the members of the interest committee next week, and then we would like to hear Powell elaborate on what is needed.