This week, global financial markets regained momentum, supported by:
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The robust health of the U.S. economy and the recent 25 basis point rate cut by the Federal Reserve.
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Wall Street took advantage of this context to reach new record highs, despite some doubts triggered by Oracle’s results, which renewed concerns about the valuation of companies linked to artificial intelligence.
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Investors are now closely watching upcoming U.S. inflation data, which could trigger the traditional year-end rally
🌍 Current Economic Environment
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Monetary Policy:
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The Fed cut rates by 25 basis points and signaled a pause in future moves, reassuring the market that no immediate rate hike is expected.
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U.S. Treasuries eased after Jerome Powell’s speech, indicating that the market does not view the rate cut as a monetary policy mistake.
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Market Sentiment:
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Equity indices are climbing to new highs, supported by the Fed’s stability and renewed investor confidence, despite uncertainties around AI profitability.
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Gold and the euro are also benefiting from this dynamic against a moderate U.S. dollar.
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Economic Outlook:
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In the U.S., the normalization of statistics affected by the government shutdown is ongoing.
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Key upcoming releases include:
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November Employment Report (Tuesday)
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November Inflation Data (Thursday)
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December Flash PMI for major economies (Tuesday)
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Monetary policy decisions in the Eurozone, U.K., and Japan (Thursday and Friday)
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Companies reporting earnings include Micron, Accenture, Nike, and FedEx
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📈 Investment Recommendation
Why consider increasing exposure to financial markets?
✅ 1. Central Bank Support
The Fed’s accommodative policy and stable rates provide a favorable environment for equities, gold, and currencies such as the euro.
✅ 2. Diversified Sector Opportunities
Markets continue to offer opportunities in technology, consumer discretionary, and logistics, despite certain sector-specific uncertainties (e.g., AI valuations).
✅ 3. Resilience Amid Uncertainty
The combination of a solid U.S. economy, prudent monetary policy, and the resumption of investment flows allows investors to capitalize on a gradual rise in indices.
❗ Risks to Monitor
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Volatility around key macroeconomic releases (inflation, employment, PMI).
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Sector-specific pressures, especially on technology and AI-related stocks.
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International monetary policy decisions that could affect equity and bond markets.
👉 Investment Conclusion:
The current context remains favorable for financial markets: investors can benefit from Fed-backed stability while monitoring macroeconomic releases and corporate earnings to guide sector allocation and strengthen portfolio diversification.