Market Insights 9/8

Several key market events are scheduled for this week, which could influence global financial markets:

  1. U.S. Consumer Price Index (CPI) - September 13: The U.S. CPI report will be a major focus, with expectations for a slight increase in inflation. This data is important ahead of the Federal Reserve’s upcoming policy meeting and could impact rate decisions later this month.
  2. European Central Bank (ECB) Meeting - September 14: The ECB is expected to update its monetary policy. While inflation in the Eurozone remains high, uncertainty lingers about whether the ECB will raise rates further or hold steady.
  3. U.S. Retail Sales - September 14: This report will provide insights into consumer demand in the U.S. economy, serving as an important indicator of economic health.
  4. UK GDP and Labour Market Data: The UK will release its monthly GDP and labor market data, which could affect the GBP and provide insights into the UK’s economic momentum.
  5. China Economic Data: Several important economic reports from China, including industrial production and retail sales for August, will be released, offering clues about the country’s economic recovery.

These events will be critical in shaping global market sentiment, especially concerning inflation, growth, and central bank policies​

The market is currently experiencing downward pressure; however, I anticipate a temporary rebound due to short covering and dip-buying interest. This could lead to a brief rally or dead-cat bounce before the market resumes another downward trend. To trigger significant selling pressure, we should expect the NASDAQ to dip below the 16,650 level.

Trading Recommendation:

Wait for clear signals before initiating short positions. However, traders may also consider participating in the short-term rally, as there may be opportunities during the expected bounce. It’s essential to remain cautious and closely monitor market conditions for signs of the next downward wave.