The MSCI world equity index, after hitting a two-month low on Friday, shows an increase of 0.3%, highlighting the gains in Europewhere the FTSE 100 hits an all-time high and the STOXX 600 trades at one-week highs, especially thanks to momentum from the technology sector.
This optimism is supported by surveys indicating growth in business activity in Germany in early April, after months of contraction, as well as expansion in the euro zone at its fastest pace in almost a year.
Meanwhile, the dollar retreats from its recent highsalthough it remains solidly supported by investors’ belief that the Federal Reserve will not reduce short-term interest rates, and by the rise this month in Treasury bond yields to their highest level since November.
Wall Street in suspense
On Wall Street, big tech companies are showing strong performance ahead of their quarterly results, driving the Nasdaq up 1.1%. Nvidia, leader in artificial intelligence, stands out with an increase of 4.4%, while Amazon.com and Alphabet also record gains. However, Tesla falls 3.4% after cutting prices in its main markets.
The day promises an avalanche of results from big companies, including Tesla, PepsiCo, UPS, Lockheed Martin and Halliburton. Furthermore, companies such as Meta Platforms, Alphabet and Microsoft They will also present results during the week.
Regarding interest rate expectations, traders now anticipate a possible first cut by the Federal Reserve in September, cThere is only an estimated 40 basis points of cuts for this year, in contrast to initial expectations of more significant cuts.
In Europe, the situation is different, with expectations of a cut by the European Central Bank in June, putting pressure on the euro. The Japanese yen, on the other hand, continues to fall and hits another 34-year low against the dollar.
In the commodities market, oil is experiencing a slight decline after paring its previous gains, while gold continues its decline for the second day in a row, losing 1% to $2,320 an ounce, after a significant 12% rise. so far this year. Investors are choosing to take profits following the recent rally in the precious metal.
Source: Ambito
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