Stock market shares

Stocks rally today. There is reason for optimism for the markets

Markets Rally: Stocks rose broadly on Monday, extending last week's gains, amid optimism that interest rates are near their peak.
The dollar has weakened.
MSCI's benchmark Asian stock index rose for a fourth day, heading to its highest close since September.
South Korea's Kospi jumped 4.4%, following news on Sunday that the country would ban short selling until the end of June.
Chinese real estate and technology developers are also growing.
stock futures rose on Monday, after the S&P 500 rallied nearly 6% last week.
The gains in risk assets are driven by only one reason: the prospect of an accommodative Federal Reserve, with rate cuts in sight in 2024.
Optimistic markets, what happens today? It's all up to the Fed Investors have brought forward their forecasts of Fed rate cuts for next year, and have now fully priced in a reduction by June, according to swap prices.
The rise in dovish bets was partly driven by Friday's weaker-than-expected U.S.
payrolls report and a small increase in unemployment.
“There's more reason for investors to be more optimistic that the Fed is probably done with rate hikes, but we shouldn't let our guard down,” said Vasu Menon, managing director for investment strategy at OCBC Bank Singapore, on Bloomberg Television.
“If the economy proves more resilient, if inflation proves more tenacious, bond yields could rise once again.” Forecasts of Fed easing next year are at odds with the so-called “higher for longer” narrative that policymakers have outlined in recent months, putting the market, and Fed officials, on a collision course.
read also For the king of bonds, Bill Gross (PIMCO), the USA will go into recession “Our opinion remains that the rate cuts by the Fed, ECB and BoE will arrive a little earlier than expected by the markets and, in the early stages, are likely to be bolder in size,” analysts at NatWest Markets wrote in a note.
“We expect the federal funds rate to fall to 3-3.25%, the ECB deposit rate to 3% and the BoE bank rate to 4.25% by the end of 2024.” In this climate, shares in China closed with significant increases, Shenzhen at +2.19% and Shanghai at +0.91%.
Hong Kong travels with a +1.63%.
The Nikkei closed with a +2.33%.
Of note, on the commodity front, oil gained ground after Saudi Arabia and Russia reaffirmed that they will maintain supply limits of more than 1 million barrels per day until the end of the year.
Gold fell after Friday's rally on optimism that the Fed can avoid further monetary tightening.
read also A global economic crisis is not as far away as one might think

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