MSCI’s global stock index fell 0.14% and the pan-European STOXX 600 dipped 1.02%. In Asia, meanwhile, Japan’s Nikkei lost 1%, moving away from three-decade highs.
On a day in which Wall Street remained without activity due to the Emancipation Day holiday and the Argentine stock market did not operate either due to the bridge holiday set to commemorate Flag Day, in the markets of the rest of the world, shares traded mostly bearish this Monday, after having touched maximum levels in 14 months last week.
The European stock markets closed today with widespread losses, in a round in which the main stock market indices did not have Wall Street’s compass. Thus, the Spanish IBEX 35 fell 0.66%; in Paris, the CAC 40 lost 1.01%; the FTSE MIB in Milan fell 0.39%; In Frankfurt, the DAX 40 lost 0.96%, while the London Stock Exchange closed the day down 0.71%.
In this context, the world stock index of MSCI fell 0.14% and the pan-European STOXX 600 subtracted 1.02%. In Asia, meanwhile, Japan’s Nikkei lost 1%moving away from highs of three decades.
Chinese stocks fell 0.9% and Hong Kong’s Hang Seng plunged 1.2% as investor hopes that Beijing would take strong economic stimulus measures faded.
What’s coming for the week
After the stock market applauded the Fed’s decision not to raise interest rates in June, ahead of the week that begins this Monday, markets continued to be dominated by monetary policy bets and investors await the statements of the president of the Federal Reserve of the United States (FED), Jerome Powell, before Congress from that country, which will arrive next Wednesday and Thursday.
The hopes of for the Fed to end its campaign of rate hikes They have been driving global stock indices more aggressively in decades, dominated by US mega-cap tech stocks, which tend to outperform when risk appetite is aided by looser monetary policy.
Billions of dollars have flowed into big tech in recent weeks, with analysts citing the productivity-enhancing potential of Artificial Intelligence for the rebound. “The obvious AI narrative has dominated this rally in tech stocks,” said Hawksmoor’s Dan Cartridge.
But he stressed that this also has a lot to do with the rate expectations and warned that if the Fed maintains its hawkish stance, “we will quickly see valuation compression again.”
Source: Ambito
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