China in the sights of investors and world stock markets in the run-up to central bank meetings

China in the sights of investors and world stock markets in the run-up to central bank meetings

He financial outlook world experiences a boost on Monday, supported by encouraging economic data from China and caution ahead of crucial central bank meetings scheduled for this week, which could mark the end of the era of easy money in Japan and moderate interest rate cuts in the United States.

In Europe, stocks show a slight gain of 0.1%, while the MSCI global index advances 0.2%, reflecting an atmosphere of moderate optimism among investors.

China reported that industrial production increased 7% annually in January and February, and retail sales also recorded a 5.5% increase from a year earlier. However, Concerns persist about the real estate sectoras investment in this area decreases by 9% year-on-year, highlighting the need for additional support policy measures.

The index Nikkei of Japan shows a solid advance of 2.7%, while the Shanghai benchmark also benefits with an increase of close to 1%.

The data that the market expects

Markets’ attention is focused on the meetings of the central banks of the United States, Japan, the United Kingdom, Switzerland, Norway, Australia, Indonesia, Taiwan, Turkey, Brazil and Mexico scheduled for this week. Although it is anticipated that many will maintain their stable policies, uncertainty persists due to the possibility of surprises.

In Japanthere is speculation that the Bank of Japan will end its prolonged period of negative rates, especially after companies agree to the largest pay increases in more than three decades. However, some analysts suggest that the Bank of Japan could choose to wait until April to make a decision, coinciding with the publication of new economic forecasts.

In the foreign exchange market, The dollar shows strength against the Japanese yen, trading at 149.12 yenwhile the euro falls against the dollar, settling at $1.0894 after a 0.5% drop the previous week.

In the stock market, S&P 500 and Nasdaq futures post gains of 0.3% and 0.6% respectivelyin a climate of growing nervousness before the Federal Reserve meeting scheduled for Tuesday and Wednesday.

In the bond market, the two-year US Treasury yield rises to 4.71%, while the 10-year bond yield stands at 4.306%.

In the oil market, prices show an improvement of more than 60 cents, reflecting greater stability amid the global dynamics of the energy market.

Source: Ambito

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