The European stocks hit highs since January 2022 and the performance of the US bonds fell on Monday, at the beginning of a week full of business reports, European inflation data, meetings of the Federal Reserve and the Bank of England and employment figures in the United States.
The pan-European STOXX 600 index rose slightly, helped by the strength of the energy sector in the face of renewed tensions in the Middle East, reaching new two-year highs after completing its biggest weekly gain in more than two months last week.
The US stock futures were trading stable, suggesting there will be no immediate disruption of the S&P 500’s all-time highs, driven by data showing economic growth holding up while inflation continues to slow, allowing the Federal Reserve to begin cutting interest rates.
The asian stocks They rose, as the new measures adopted by Beijing to stabilize the local market offset the drag on morale caused by the liquidation order of the real estate giant China Evergrande.
However, there are many issues on the agenda this week that could alter this largely positive tone.
Five of the “Magnificent Seven” big tech stocks that have dominated US markets in recent months will report results this weekwhile the Fed will conclude its rate-setting meeting on Wednesday and the ever-crucial nonfarm payrolls will be released on Friday.
“There is room for U.S. rate cut expectations to rise this week,” said Rabobank’s Jane Foley. “Many economists warned last time that (Fed Chair Jerome) Powell would push back market expectations of cuts, and he chose not to, so we’ll have to see what he does.”
“That then feeds into nonfarm payrolls, particularly wage inflation, because even if Powell doesn’t beat expectations, if the wage inflation side of payrolls is a little bit firmer, the market will read that as they need be careful, and that March could be too early for rate cuts,” he added.
He dollar and the return of the bonuses They were located on Monday in the center of recent ranges. The yield on benchmark 10-year papers fell almost 6 basis points to 4.101%.
Investors were also sensitive to geopolitical risks and the Petroleum rose slightly after a Houthi missile attack caused a fire on a ship in the Red Sea and a drone attack killed three US soldiers in Jordan.
In Asia, the main drag on stocks was the order of a Hong Kong court to liquidate Evergrande, the poster child for the Chinese real estate crisis. Hong Kong’s Hang Seng Index trimmed gains on the news and closed up 0.78%, and leading Chinese stocks fell 0.9%.
The dollar index was stable at 103.55 units, at the midpoint of its range of the last two weeks, although the euro hit a five-month low against the pound sterling.
Spot gold rose 0.5% to $2,028.9 an ounce.
Source: Ambito
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