JPMorgan reveals two key factors that will dominate the market in 2024

A survey released on February 6 by JPMorgan bank showed that inflation and the US presidential election will be the biggest factors influencing global markets this year.

Inflation and the US presidential election - factors that will dominate the market in 2024. (Source: Getty Images)

According to the survey, 27% of traders see inflation as the biggest influencing factor and 20% of respondents said the November election will affect the markets.

Bonds and stocks both rallied late last year on expectations that slowing inflation would prompt the central bank to cut interest rates aggressively this year.

However, a positive report on the labor market released on February 2 prompted the biggest sell-off in US government bonds since September 2023.

Markets are bracing for further volatility as the US presidential election looms.

“This year there is a greater focus on macro events that could create short-term volatility, particularly the release of monthly US employment and inflation figures,” said Eddie Wen, head of global digital markets at JPMorgan.

Recession fears, which topped last year's survey, fell to third place as economic growth beat expectations, the survey found.

Conflicts in Europe and unrest in the Middle East also received attention.

Market volatility remains the top challenge, while access to liquidity remains traders' biggest market structure concern, according to traders.

“As electronic trading becomes more prevalent, access to consistent liquidity across multiple providers is becoming more important to investors,” said Chi Nzelu, head of macro electronic trading at JPMorgan.

Source: https://baoquocte.vn/jpmorgan-tiet-lo-hai-nhan-to-chinh-chi-phoi-thi-truong-nam-2024-260163.html