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Series of losses has been recorded for US stocks

A sharp decline was witnessed last week in the US stock indices and the US dollar, in conjunction with investors’ concern about stagflation. In addition to the rise of the level of inflation to a level not seen in the United States of America in 40 years.

The US Dow Jones Industrial Average declined for the eighth consecutive week, recording the longest losing streak since 1932. Losses were recorded by 2.9% during last week’s trading. The S&P 500 index fell by 3%. The Nasdaq fell 3.8%.

Amidst the fear in the markets of an economic recession, gold was a tool held by a large percentage of investors, and it rose by 1.8% during last week’s trading, to a close above the level of 1840 dollars per ounce.

With US Treasuries and US dollar declining, it is expected that there will be a chance to see more inflows towards gold in the coming weeks and months.

The Reserve Bank of New Zealand is scheduled to meet next Wednesday, 25.5.2022 to discuss interest rates, as expectations indicate a 50-point hike in interest rates. In their last meeting, the bank surprised the markets, when it raised interest rates by 50 points, which was expected to rise by only 25 points.

Speaking of the economic calendar, next Tuesday, 24.5.2022, the German Manufacturing and Services PMI numbers, and the US Manufacturing Purchasing Managers’ Index numbers, are scheduled to be released. Also, Mrs. Christine Lagarde, President of the European Central Bank, is scheduled to deliver a speech at the opening of the World Economic Forum in Davos.

This Wednesday, 25.05.2022, will be important for the markets, as it will include the release of the Federal Reserve’s report, with expectations that it will be strict in raising interest rates in light of the significant rise in US inflation figures.

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