Sujata Rao gives a glimpse at what lies ahead.

This is a meltdown?

The stock market has reached new heights as confidence increases that world’s largest central banks won’t be in hurry to increase interest rates despite positive developments on the job and post-COVID fronts. If Tuesday’s close was stronger, it would have its longest win streak since 2004.

Citi notes too the hefty increases in “long” futures positions on the S&P 500 as well as the STOXX indexes.

All the anxiety over a Tesla 5% drop (NASDAQ:)

The rally seemed to have stopped for breath, perhaps waiting for U.S. consumer inflation figures and factory gate price data later Tuesday. The ZEW Index in Germany will show how confidence levels are shaping up. The world stock market is at record highs, and Wall Street and European markets are heading south.

There is still some trepidation: JPMorgan (NYSE) clients surveyed weekly, only 49% said they planned to increase their equity exposure. They are split 50/50 on whether central banks or markets are correct about the timing of rate rises.

The equity juggernaut is unstoppable, despite the fact that inflation-adjusted yields are showing little sign of easing from deeply negative territory. You can also see why the cryptocurrency market cap has grown to more than $3 trillion. Ether is up almost 70% against the dollar, since October’s start.

You can listen to Fed and ECB speakers later in the day; Jerome Powell, Fed chair and Christine Lagarde, ECB president will be both on the wires.

Markets should be more informed by key developments on Tuesday

Source: China state council think tank met banks and developers as the country’s debt problems mount

PayPal Holdings Inc beat Wall Street’s estimates of quarterly profits nL4N2RZ49S

Retail Sales -UK BRC

Germany trade balance/ZEW

ECB policymaker Klaas Knot speaks – 1150 GMT. ECB president Christine Lagarde speaks – 1300 GMT. ECB bank supervisor Andrea Enria is 1315 GMT. Tiff Maklem, Governor of the Bank of Canada, speaks.

-US 10-year note auction

Romania and Serbia meet the central banks to explore emerging markets

Europe earnings;   Porsche, Tag Immobilien, Persimmon (LON:), Direct Line Insurance, Bayer (OTC):, Swiss Life

US earnings: Doordash and Palantir. BionTech