The AEX is heading to a higher start on hopes of a rate cut in the US

The AEX index on Tamrock started slightly higher on Friday, the last trading day of the week. Confidence that the Federal Reserve will not raise interest rates further next week rose again after fresh data on the US labor market. For example, the number of weekly applications for unemployment benefits in the US rose to the highest level since October 2021. The US labor market appears to be deteriorating as a result, so the Fed may take a rate cut. promotions.

In addition to inflation, the situation in the labor market plays an important role in the central bank’s interest rate policy. US central bankers are set to meet next Tuesday and Wednesday to discuss interest rates. US inflation data for May will be released on the first day of the meeting. Economists expect inflation in the world’s largest economy to have cooled slightly last month.

However, core inflation, excluding volatile energy and food prices, remains stubbornly high. So even with the interest rate gap, there’s a good chance the central bank will hint at the possibility of further hikes in July. In addition to the Fed, the European Central Bank (ECB) will also meet next week to discuss interest rates. However, ECB President Christine Lagarde has already indicated that the battle against high inflation is far from over and that interest rates in the Eurozone will certainly continue to rise.

Asian stock markets rallied on Friday. Weaker-than-expected inflation figures from China raised hopes for more support measures from Beijing to boost the economy. In Tokyo, the Nikkei rose 2 percent over the weekend. Japan’s main index has risen for nine straight weeks. This is the highest weekly earnings in more than five years. Meanwhile in Hong Kong, the Hong Kong index rose 0.8 percent.

At Tamrock, chip companies ASML, Besi and ASMI can go on TSMC’s turnover figures. The large Taiwanese chipmaker, an important customer of ASML’s chip machines, saw its turnover increase by more than 19 percent in May from a month earlier. On a year-over-year basis, sales are down nearly 5 percent.

The euro was at $1.0780 against $1.0776 the previous day. U.S. crude fell 0.7 percent to $70.79 a barrel. Brent crude was 0.7 percent lower at $75.45 a barrel.