Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

June will be a month 'to remember" says BofA as central banks prepare to cut rates

Published 10/05/2024, 11:28
© Reuters.

Analysts at Bank of America (NYSE:BAC) said June will be one "to remember" with key decisions for many central banks to come. 

The investment bank noted that this week was rich in central bank surprises, with the Riksbank deciding to take the lead and cut rates and the Bank of England showing a lot more confidence in inflation going in the right direction than they had expected. 

"In a way, we got a glimpse of what June - with key decisions for many central banks - would look like for markets," said BofA. 

They add: "All together, it seems we may be heading into one of the most important months for markets in a long with key decisions ahead for many central banks. This may prove to be a June to remember."

For the BoE, BofA said they took another decisive step towards a first cut and "all meetings are live from here."

"BoE shows a 'structural' dovish bias, but we still think wages will be stickier. Our call remains for a first cut in August," states BofA. 

According to BofA, the focus in Europe will be on the UK labour market data for March next week. The German ZEW should continue to improve in May, and the preliminary 1Q GDP release for the Euro area will provide more insights on growth development across the region.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.