📆 Thursday, March 28
► European equities hit new records as the Stoxx 600 Index ends a second quarter with strong gains, driven by central bank policies hinting at upcoming rate cuts. This week saw modest movements among investors rebalancing portfolios at the quarter's end. In economic news, Germany's unemployment rate remained unchanged while retail sales decreased by 0.8%. In the UK, GDP contracted by 0.3% in Q4 which aligns with cautious investor outlooks, emphasizing the need for strategic central bank interventions to sustain economic momentum.
► In the US, futures are little changed, after the S&P 500 reached an all-time high, underscoring the market's sensitivity to Federal Reserve signals and economic data. Markets await the release of GDP growth and job data later today. On Friday, the Fed's preferred inflation gauge (PCE Price Index) is due, which leads Wall Street to balance on the edge of optimism and the need for concrete earnings growth to justify current valuations. The markets will act cautiously today, as the markets will be closed for the holiday tomorrow when the important US inflation figures are published. The latest comments by Fed Governor Christopher Waller, who advocates patience when adjusting interest rates until inflation trends are clearer, are contributing to the caution.
► Asian markets present a mixed view with Hong Kong and Japan advancing, while Taiwan sees declines. Japan's finance minister's currency warnings and China's bolstering of the CNY reflect the region's nuanced economic landscape. The AI sector's rally notably supports shares in Hong Kong, Taiwan, and South Korea, illustrating the global impact of technological advancements on stock markets.
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