05.05.25 - Waiting for the Fed

A busy week ahead for markets with earnings season to continue and potential news on tariffs:
- Fed decision on interest rates on Wednesday.
- OPEC+ decided to rise oil output
- Tariff announced for the movie industry, could impact Netflix.
- Trump says announcing tariffs for pharmaceuticals over the next 2 weeks.
- Tariffs on auto parts are now in effect - Ford suspends guidance for 2025 amid USD 2.5billion tariff impact

Markets: Asian markets closed this Monday, Europe indices up while the US stocks dropped together with cryptos, oil and US dollar currency while gold regained the level of USD 3’300.

My view: After the recent record winning streak, single stocks and overall markets can react very vulnerable to any news. The investor sentiment index turned to “greed” from “extreme fear” in only few days after remaining a record time period in the “extreme fear” area, back since end of February.
The market does not expect any rate cut. I share this view as the US central bank has no rush and big reason to lower rates even with mounting pressure coming from the White House.

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