Markets in uncertainty, the reasons are in these 4 countries

Markets today are dealing with at least 4 crucial pieces of news for investors, which represent as many uncertainties about the direction of global stock markets in the coming weeks and months.
Stocks in Asia closed the session slightly higher, supported by a late rebound in China.
Japan bucked the trend, with bets on a rise in interest rates pushing both government bonds and local stocks lower.
Benchmarks in China and Hong Kong rallied for a second day on hopes of a support package for the year-to-date dragon market.
Contracts for European stocks and U.S.
stock futures rose after the S&P 500 index ended the overnight session on Wall Street at a record high, supported by positive earnings reports from major companies.
In this context, the markets are still immersed in an uncertain climate, in which the great world powers, from the USA to China to Japan and Europe, face complex challenges.
For this, investors must evaluate at least 4 volatility factors coming from these strategic world areas.
read also Dollar, forecasts for 2024.
Here's why it will be a difficult year 1.
Japan While waiting for the turning point of the Japanese central bank, the nation has become the protagonist of the markets.
Even today the spotlight was on Japan's trade.
Specifically, Japan's 10-year sovereign bond yield briefly rose more than 10 basis points after Governor Kazuo Ueda said on Tuesday he was increasingly confident of hitting the central bank's price projections.
Traders viewed the comments as aggressive, spurring a decline in the Nikkei 225 index and strengthening the yen against the dollar.
“We've seen some strength in the Japanese yen across the board, and that's pushing the mighty Nikkei further down from its highs,” said Matt Simpson, a senior market strategist at City Index.
The BoJ maintained its ultra-easy monetary settings yesterday but signaled its growing belief that the conditions to phase out its huge stimulus were coming to fruition, suggesting the end of negative interest rates was nearing.
“We have long believed that April is the first month the BoJ will consider raising interest rates and ending yield curve control,” Commonwealth Bank of Australia analyst Kristina said in a note Clifton.
2.
China In Asia, Chinese stock markets are being watched with attention, and skepticism, after an unhappy start to the year.
A Bloomberg report on Tuesday that Chinese authorities were preparing a package of measures worth $278 billion to stabilize the flagging stock market offered some hope that markets could stabilize, even as investors remain dubious about a massive move of Chinese politicians.
Chinese stocks ended today's session higher after volatile trading.
Hong Kong's Hang Seng Index rose 1.6% but fell 8% in January.
Hong Kong shares were supported by Alibaba Group, which gained 6%.
The jump came after a report said co-founder Jack Ma and Chairman Joe Tsai bought millions of dollars worth of shares in the Chinese e-commerce giant in the fourth quarter.
read also Here's how China is exporting deflation to the world 3.
USA In the year of the US presidential elections, the alert is high on what could happen to the world's greatest power.
Trump's return to the scene is already causing worried reactions on the political, diplomatic and financial fronts globally.
Meanwhile, former US President Donald Trump won the New Hampshire primaries, thus inflicting a severe blow on his only rival, Nikki Haley, and consolidating his status as the probable candidate of the Republican Party.
His victory in New Hampshire comes after the decisive one in Iowa and represents a setback for Haley, ahead of the February 24 primary in her home state of South Carolina.
According to the RealClearPolitics polling average, Trump is currently leading Haley by about 30 points.
4.
Europe Investors' attention is now also focused on Europe, still teetering between stagnation, recession and a slight recovery in 2024.
The data from the manufacturing purchasing managers' index (PMI) due out this morning, considered a good indicator of economic health, will offer indications on Germany, France and Great Britain and the Eurozone.
Meanwhile, the ECB meets tomorrow for its first meeting of 2024.
No news is expected on rates, which will probably still remain stuck at 4.5%.
But Lagarde could give investors insights into the highly anticipated first rate cut.

Share

Recent Posts

  • Lucca Comics

Lucca Comics 2024: Dates, Tickets, and Schedule Revealed

Lucca Comics 2024: Dates, Tickets, and Program The countdown has begun for the most anticipated… Read More

  • Datore di lavoro

New Rules for Hiring Foreign Workers Effective November 1st

Decree-Law No.145/2024: Overview of the Flux Decree The Decree-Law of October 11, 2024, No.145, known… Read More

  • EUR - Tassi di interesse BCE

ECB Rates: Germany’s Major Blow to Italy

ECB Keeps Interest Rates Steady Amid Eurozone Resilience The hopes of Italy for a significant… Read More