The Week Ahead (16 – 20 Feb): FOMC Minutes, UK Unemployment & Inflation, Garmin, Walmart, Transense Technologies

Markets

The UK Market has been the place to be so far this year, with the FTSE 100 making new highs again this week:

Pleasingly, the FTSE250 appears to have joined in the rally. However, as I am repeatedly pointing out, at the moment, valuations are still compelling the further down the market cap range, suggesting that the positive asset flows have yet to percolate throughout the UK market.

Here's what we can look forward to next week:

Economic Calendar

FOMC Minutes

These minutes have no immediate impact on U.S. interest rates, which were held at the last meeting at 3.75%:

[All charts in this section: Trading Economics]

However, they can have a big impact on the market’s view on the future rate trajectory, impacting everything from long-term mortgage rates to equity valuations.

Recent public comments show a division between those on the FOMC committee arguing for slower easing or holding rates steady and those pushing for more cuts to support growth if inflation eases. Of particular note will be how policymakers discussed inflation trends, especially where they see risks to achieving the Fed’s 2% target.

UK Unemployment

Many analysts have also noted a softening jobs market, with concerns about layoffs in services and slower hiring. Therefore, markets will be concerned with a rate that continues near or above 5%. In terms of forecasts, things are expected to get worse before they…

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