An analyst at London-based financial broker ActivTrades has argued that mixed developments in global stock markets this week are “broadly a reflection of lingering inflation concerns”.
Investors expect an early rise in inflation in the United States because of the current successful vaccine rollouts there, technical analyst Pierre Veyret said in a statement.
On the other hand, the current COVID-19 resurgence in Europe with renewed lockdowns may push stock prices up as many expect the European Central Bank to continue its support for the stock market, he said.
U.S. President Joe Biden’s $2 trillion infrastructure stimulus plan has been another source of hesitation as some investors have been afraid to go too far before Biden is due to unveil the plan on March 31, according to Veyret.
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