Markets Insight

Frankfurt After a weak week, especially for European stocks, investors are now looking tensely to the USA. New consumer and producer prices are pending there, for which assessments by leading US central bankers and statements on the further course of interest rate policy are to be expected.

Their latest hints point to more rate hikes, although Friday’s US jobs report sent mixed signals. In Europe, strategists fear new weak economic data. Meanwhile, they hope for encouraging company reports.

After the sell-off of shares in the past week, investors could ask themselves whether the markets no longer reflect reality, says Craig Erlam, an analyst at US broker Oanda, interpreting the situation on the stock markets.

So far, between fears about the economy and concerns about interest rates, investors have always found a way to become optimistic. “But with every reliable data value and every further interest rate hike by the central banks, it becomes more difficult,” he says.