Stock market shares

4 things to know to start your day at the markets

The markets today are starting from 4 key themes that are monopolizing investors' attention.
In Asia, the session is about to end with Chinese indices and the Hong Kong stock market rising, with the Hang Seng gaining more than 2%.
Japanese stocks rose to 34-year highs.
Overnight in the United States, the Dow Jones Industrial Average and the S&P 500 set new all-time highs.
The tech-heavy Nasdaq Composite advanced 0.32%.
The movements of the indices confirmed that Wall Street continues its upward trend.
While waiting for the opening of the European stock exchanges, the markets today put the spotlight on 4 very relevant topics for trade.
China towards support? The Chinese government pledged on Monday to take more forceful and effective measures to support market confidence.
Further lifting sentiment was a Bloomberg News report that policymakers were trying to mobilize around 2 trillion yuan ($278 billion) to stabilize the country's flagging stock markets.
The world's second-largest economy is facing numerous challenges, including a deepening housing crisis and weak consumer demand, which is fueling deflationary pressures.
All of these factors have weighed on the stock market in recent weeks, causing sell-offs.
read also Ray Dalio bets on China.
Assets doubled in 2024 2.
Accommodative Japan The Bank of Japan kept monetary policy settings unchanged but without offering clear indications on the likely timing of a potential end to the negative interest rate.
It cut its near-term inflation forecast but revised its forecast for fiscal 2025 upwards from 1.7% to 1.8%.
The BOJ kept the short-term rate at -0.1% and left the yield curve control parameters unchanged at the end of a two-day meeting.
The decision initially weakened the yen against the dollar before swinging to a small gain as investors digested the implications of the decision.
Escalation in the Red Sea The United States and the United Kingdom launched new airstrikes on eight Houthi targets in Yemen on Monday, the latest move in an allied effort to prevent the group from stopping commercial shipping in the Red Sea.
This marked the eighth round of allied attacks in 12 days targeting an underground storage site and locations linked to the Houthis' "missile and air surveillance capabilities", the two countries said in a statement alongside partners.
Australia, Bahrain, Canada and the Netherlands.
read also Red Sea, does Italy go to war against the Houthis? What the Aspides mission predicts 4.
Beware of these risks Traders have recalibrated their expectations on the first rate cut, bringing them back towards the Fed's base scenario which sees a more moderate path to reducing financing costs.
This vision aligns with a scenario in which the economy slows in a controlled manner, avoiding a hard landing or recession in the US.
However, an analysis on Bloomberg suggests, risks remain that could easily strike and upset market optimism.
read also Geopolitics scares the world in 2024.
The reasons Among these is the potential for another commodity-driven inflationary shock, considering the chaos that the Red Sea conflict has caused on major shipping routes.
There's also geopolitics, which most Goldman Sachs clients have cited as the biggest threat in 2024 and which includes wars in Europe and the Middle East, as well as tensions between China and Taiwan.
Coming second in Goldman's survey is November's US presidential election, with investors contemplating the potential reversal of key trade and security policies that could lead to another Donald Trump victory.
Tuesday's New Hampshire Republican presidential primary will be one to watch.

Author: Hermes A.I.

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