IMF forecasts, Fed and stock market monsters

In terms of news, yesterday can hardly be called oversaturated. The UK labor market was not as bad as it could be. The IMF has updated its forecasts for the world economy in the foreseeable future. On average, 5.5% growth is expected in 2021, which is 0.3% higher than the previous estimates announced in October.

Perhaps this information explains the surge of optimism in the financial markets that was observed yesterday.

Markets may receive another dose of positive today this time from the Fed. Almost for sure the positive will not consist in further easing of monetary policy, which would be ideal for buyers in the US stock market. Rather, we are talking about a certain status quo in its current form. Markets are waiting for confirmation that the current ultra-low rates and quantitative easing program are for a long time.

And if suddenly this does not seem enough to the markets, then today the real monsters of the US stock market will publish their financial results. We are talking about Apple, Facebook and Tesla. Microsoft already made it clear yesterday that the tech sector felt like a fish in water in 2020. It is likely that today, after the market closes, similar conclusions can be drawn after the report of other titans.

In general, the bubble has every chance of continuing to inflate. And on this occasion, we recall one of the fairly well-known statements: “The market doesn’t end with some terrible burst of bad news. It ends when things are pretty darn good, but not quite as good as yesterday”.