Outlook 2024: The economy, inflation and stock markets in focus for financial experts

Outlook 2024: The economy, inflation and stock markets in focus for financial experts

According to a report by www.faz.net, a moderate picture emerges for economic expectations in the USA, China and the Eurozone for 2024. Improved inflation data and the ongoing reduction in central bank balance sheets are shaping the mood. Some risks such as the geopolitical situation and the upcoming US presidential election campaign could affect the stock markets. Nevertheless, there are signs of a classic duel as the economic downturn progresses, accompanied by negative company data and impulses from falling bond interest rates and the discussion about key interest rate cuts.

The S&P 500 is in a moderate upward movement and could test the resistance zone at the all-time high at 4820 points. The Nikkei 225 has a good chance of rising towards 36,500 points. The Euro Stoxx 50 and the Dax also show positive tendencies, but have to deal with staggered resistance zones.

Regarding the S&P 500, the technical analysis suggests that from a larger perspective the index shows an unfinished sideways swing, with a positive tone and a strategic hedging stop at 3450 points. In the medium term, the technical situation signals a friendly tone for 2024 and a test of the all-time highs at 4820 points. The company's forecasts indicate expected earnings of approximately 235 index points, resulting in a sporty P/E ratio of 19. This could indicate limited upside potential.

A continuation of the bullish cycle is expected for the Nikkei 225, accompanied by an ultra-loose monetary policy and a significant devaluation of the Japanese yen. This indicates that the index is climbing, although a technical correction has already taken place.

These developments are expected to impact the stock market, the economy and potential investors. A positive technical situation and expected earnings could boost investor confidence and lead to rising prices. However, the limited upside potential and potential risks should also be considered to make informed decisions.