Equity Markets Navigate Macro Scenarios Amid Interest Rate and Stagflation Concerns
Equity markets navigate various macroeconomic scenarios as investors weigh the risks of prolonged high interest rates and potential stagflation.
HSBC suggests that greater clarity from the Federal Reserve, even if leaning more hawkish, could ease market pressures. Strategists believe this could lead to global equity gains in both a balanced "goldilocks" scenario and a mild stagflation scenario.
"The exact timing of Fed rate cuts should not significantly impact equities, especially if any delay is due to economic strength," they noted in a statement.
The upside for global equities both in a goldilocks and a mini stagflation scenario
Technically side:
The price dropped as we mentioned in the previous idea, and still trading at the bearish zone to reach 75.35.
so the bearish trend suggestion will continue as long as trades under 78.78 toward 76.60 and 75.35
the price will move between 80.73 and 75.35 for this week
Pivot line: 78.78
Support lines: 76.60, 75.35, 69.78
Resistance lines: 80.73, 82.24, 83.75