📆 Tuesday, March 18
► European markets climbed on Tuesday, with the Stoxx 600 rising 0.75%, Germany’s DAX up 1.25%, and France’s CAC gaining 0.6% ahead of a historic German parliamentary vote on a €500 billion debt-financed spending package (which in reality will be significantly higher in the coming years due to further possible expenses). Investors are optimistic that this fiscal shift will boost Europe’s largest economy and provide growth momentum across the region. The EUR rose above $1.092, supported by rising German bond yields and optimism around structural reforms. Traders are also keeping a close eye on Trump’s call with Putin, which could determine the next steps for a potential Ukraine ceasefire agreement.
► US stock futures remained steady following two consecutive days of gains, as investors positioned ahead of the Federal Reserve’s policy decision on Wednesday. While the Fed is widely expected to keep interest rates unchanged, traders will be closely watching Chair Jerome Powell’s comments on future rate cuts. SmartTrader Chief Analyst Robert Lindner sees the risk of markets being disappointed by no clear support from the Fed. Retail sales data released Monday showed weaker-than-expected consumer demand, raising concerns about economic slowdown amid ongoing tariff uncertainties. However, while retail sales weakened, they were not as bad as many feared and still show generally a robust US consumer (for now). Meanwhile, Trump confirmed Chinese President Xi Jinping will visit Washington soon, potentially setting the stage for de-escalation in trade tensions.
► Asian markets extended gains, led by a 2.46% rally in Hong Kong’s Hang Seng Index, fueled by renewed AI hype and expectations of further stimulus from Beijing. Japan’s Nikkei jumped 1.24% as Warren Buffett’s Berkshire Hathaway increased its stake in Japanese trading firms, pushing investor confidence higher. China’s stock market continued its winning streak, with Shenzhen and Shanghai benchmarks hovering near multi-month highs. Meanwhile, Chinese AI giants Baidu and Alibaba surged after launching new AI models, intensifying the competition with global tech leaders.
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