OptionsDesk broker Richard Perry speaks to Thomas Warner from Proactive at the end of a week in which the markets have shown mixed performance, with the NASDAQ rising approximately 4.5%, the S&P 500 gaining around 2.5%, and the FTSE lagging behind at around 1.5%.
The highlight of the week is the US non-farm payroll report, which measures job creation in the US. Perry notes that more job additions signify a positive outlook for the US economy, but rising interest rates, aimed at combating inflation, may pose challenges by increasing wage demands, potentially perpetuating inflation. He suggests that the US Federal Reserve is facing a "hard battle" against inflation given the complex countervailing forces involved.
In the UK, measures to curb inflation are continuing to affect housing prices, which have fallen nearly 6% year-on-year according to fresh data from Nationwide, impacting demand for houses and affecting the broader market indices. As the holiday season winds down and children return to school, the financial industry expects an uptick in activity and news flow in the coming weeks. Overall, market participants are keeping a close watch on these developments as they navigate through uncertain economic conditions.
Proactive UK Ltd
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Daily Scotland News journalist was involved in the writing and production of this article.