Today’s Stock Exchanges, April 17th. Markets cautious on reopening. The market is betting on three more hikes from the ECB
[ad_1]
MILAN – A cautious restart is announced for the western stock markets, after a mixed day but without particular jolts in Asia. Investors weigh the different factors on the table: on the one hand the volatility indices have returned to the ranks after the tensions due to the banking crisis. And European equities have once again outperformed US equities. On the other hand, there is uncertainty about economic developments – with the most conspicuous weakening of the US economy – and consequently also about the moves of the central banks. If the Fed could soon interrupt the hike cycle, according to economists consulted by Bloomberg, the ECB should instead go ahead with three more hikes of 25 basis points during the meetings in May, June and July to thus reach a peak in the interest rate deposits at 3.75%. Even the market expects that the restrictive cycle is not over: the forecasts of greater caution that had surfaced at the height of the Credit Suisse crisis have already gone to the ceiling.
Positive futures for Europe
We are heading towards a positive start to the week for the main European stock exchanges on the day in which the new forecasts of the European Commission on the economy of the Eurozone are expected. Of note tomorrow in Great Britain, the data on the labor market and Wednesday those on inflation, with the latter expected to decelerate sharply compared to the month of February to 9.7% from the previous 10.4%. Futures of the Euro Stoxx 50 are up by 0.07%, those of the Dax of Frankfurt go up by 0.05% while those of the Ftse 100 mark +0.09%.
Euro just under 1.1 dollars
Euro just below 1.10 dollars, the highest levels since last April, with investors ‘devaluating’ the US currency on expectations that the Federal Reserve will soon stop its campaign to tighten monetary policy. The single currency changes hands at 1.0994 dollars, down 0.05 percent, while it rises slightly (+0.08%) against the yen (to 147.23). Dooaro/yen exchange rate at 133.95 (+0.14%).
Asian stock exchanges improve, positive signals from China
The Asian stock markets continue to rise in the first weekly session with the Chinese economy which seems to be budding awaiting tomorrow’s data on the first quarter GDP which should see a decisive recovery after the stagnation of the previous quarter, thanks to the removal of the containment measures Covid. Prices for new homes in China rose 0.5% in March to a 21-month high. Exports, again in March, rose more than expected, driven by sales of cars and electrical components and by the increase in trade with Russia. And electricity consumption, according to Nomura, has grown by 5.9% per year. The Hong Kong Stock Exchange rises by 0.46%, Shanghai improves by 0.60%, while Tokyo advances by 1.20% thanks also to the weaker yen against the dollar which should favor exports from a manufacturing economy such as the Japanese one.
[ad_2]
Source link
