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Marketmind: For tight markets, watch out for March's slide

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· McGiver (Reuters) – Jamie McGeever looks ahead to the Asian market.

Chinese reflation and US inflation.

Here’s the broad market picture painted by global manufacturing PMIs Two big Wednesday t economies, Asian stock markets ex-Japan soar 2 %, posting their best one-day gain in two months, as two of Wall Street’s three major indexes tumbled.

How Asian markets traded on Thursday for the second day of the month may come down to which of the two forces has maintained the most momentum. Wednesday’s China-U.S. manufacturing purchasing managers’ index data has a strong influence. China reopens from years of COVID – The blockade seems unusual. Manufacturing activity exploded in February, expanding at the fastest pace in more than a decade, with new export orders rising for the first time since April 05.

On top of that, the Chinese consumer is coming back to life, with some of the world’s top consumer goods and luxury goods companies saying sales in China are picking up again.

However, the U.S. manufacturing PMI report triggered a massive sell-off in both risky assets (stocks) and safe assets (bonds) – the fourth consecutive year of activity in 2018 The monthly contraction rose consecutively, but the increase in the price paid index far exceeded economists’ expectations.

As more evidence of inflationary pressures emerges, another string of hawkish comments from Fed officials leads to 50 Year Treasury Bond Yield

) up to 4% with a 2-year yield of 5. 05%. Rising bond yields, interest rates and inflation expectations are not limited to the US – Eurozone PMI The index also highlighted stagflationary pressures, while inflation expectations in the euro zone were at their highest in more than December and in rare cases surpassed their US counterparts. Can Asian markets withstand these pressures on Thursday and take inspiration from China’s economic recovery again?

No top Asian economic data releases – Korean retail sales, Australian building permits and Japanese consumer confidence – leaving Eurozone inflation in February Data was perhaps the biggest market mover of the day.

Here are three key developments that could provide more direction for Thursday’s markets:

– Korea Retail Sales (February)



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