📆 Tuesday, March 26
► European stocks experienced slight movements in anticipation of key US inflation figures set for release later this week. The Stoxx Europe 600 index showed little change. Spain's economy showed resilience with a 2% GDP growth in Q4, outpacing expectations and highlighting a steady economic recovery. Germany's consumer confidence slightly improved, suggesting a cautious optimism among consumers. SmartTrader chief analyst Robert Lindner expect more signs of an improving global economy.
► US futures saw a modest uptick following a dip in the S&P 500 Index on Monday, reflecting a mixed reaction to anticipated durable goods and consumer confidence data from the US. These figures could slightly influence the Federal Reserve's stance on interest rate cuts, a topic that Fed Chair Jerome Powell is scheduled to address. Strategists at Morgan Stanley and JPMorgan express concerns over the sustainability of current stock market valuations without corresponding earnings growth. The warning signals a cautious approach to the looming earnings season and the potential adjustments in equity markets. However, most analysts and investment banks have warned about stretched valuations also over previous months – instead we saw the equity rally extend and a very strong YTD performance so far.
► Asian markets displayed a variety of responses; Hong Kong and Japan's shares increased, whereas Taiwan witnessed declines. The offshore CNY, showed signs of strength following the People's Bank of China's intervention to support the currency. Japan's Finance Minister Shunichi Suzuki's remarks on currency volatility highlight the delicate balance authorities seek to maintain in the forex market, hinting at potential interventions if excessive movements persist.
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