Powell’s strong leadership boosts stocks before US CPI data

Welcome to the Extreme Investor Network, where we bring you the latest updates on European and global markets to help you stay ahead of the game. Today, we take a closer look at what to expect in the financial world, with insights and analysis from Ankur Banerjee.

European markets are on track to continue their rally, fueled by anticipation of the crucial U.S. Consumer Price Index (CPI) data release. Federal Reserve Chair Jerome Powell’s recent comments have reassured investors that any future interest rate hikes are unlikely, sparking a surge in stock prices. Powell downplayed Tuesday’s higher-than-expected producer price report, describing it as ‘mixed’ rather than ‘hot,’ which eased concerns among traders.

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Investors are eagerly awaiting the latest CPI figures, which are expected to show a modest 0.3% month-on-month increase in April. The Fed’s next move will likely depend on this data, with many speculating that the central bank could start an easing cycle as early as September.

In the midst of earnings season, luxury giant Burberry and Dutch bank ABN Amro are set to unveil their financial results, adding to the market’s momentum. Meanwhile, meme stocks like GameStop and AMC are making a comeback, with GameStop’s market capitalization tripling in just one week. The influence of retail investors and social media buzz is once again reshaping the market landscape, with Robinhood reporting a surge in equities trading.

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Key events to watch out for on Wednesday include the release of France’s April CPI data and Eurozone Q1 flash GDP figures, as well as earnings reports from companies like Allianz and Merck KGaA. Stay tuned as we bring you exclusive insights and analysis to help you navigate the ever-changing world of finance.

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