European stocks opened the week on a positive note, following gains on Wall Street and a rally in Asia after China announced support for its equities market.
Stocks around the world are starting the week on a positive note, despite the possibility of higher U.S. interest rates, with U.S. futures pointing to a modest boost for indexes at the opening bell.
Asian markets are expected to open strong, supported by a global equity upswing and lower bond yields, although caution remains due to the latest efforts by Beijing to support the Chinese stock market.
Global markets show mixed performance, with Japan, China, Hong Kong, India, and Australia experiencing modest gains, while the US markets closed higher fueled by optimism over a possible pause in interest-rate hikes, as oil prices extend gains and gold prices remain near three-week highs.
Global equity markets closed mostly lower, with the exception of India and South Korea, as concerns about inflation and uncertainty around Fed rate actions weighed on investor sentiment. The Japanese Nikkei closed 1.16% lower due to lower-than-expected GDP growth and China's ban on iPhones. Officials at the Hong Kong Exchange halted trading after major flooding from storms. European markets were also lower, and US equity futures indicate a lower open.
The stock market ended the week on a positive note, with gains in mega-cap tech stocks like Apple, Amazon, and Microsoft helping the Nasdaq Composite avoid a fifth straight loss, while the Dow Jones and S&P 500 also had slight gains; however, all three benchmarks closed the week in negative territory.
Asian markets are expected to have a nervous open on Monday as concerns grow about the equity selloff, tightening financial conditions, and upcoming economic data from China, while tensions between the U.S. and China could also impact trading.
Asian equity markets finished the day mixed, with Japan's Nikkei, Hong Kong's Hang Seng, and Taiwan's TAIEX declining, while South Korea's KOSPI, Australia's ASX All Ordinaries, India's SENSEX, and China's Shanghai Composite closed higher; European markets are higher in midday trading and U.S. equity futures point to a positive open following an upgrade by Morgan Stanley of Tesla's shares.
U.S. equity markets experienced their worst week since March as benchmark interest rates surged, causing concerns about tight monetary policy, a potential government shutdown, and trade tensions with China, resulting in losses for real estate equities and mortgage rates reaching their highest level since 2002.
The global markets, including U.S. and Asian markets, are caught in a cycle of rising bond yields, a strong dollar, higher oil prices, and decreasing risk appetite, leading to fragile equity markets and deepening growth fears.
Asia-Pacific equity markets closed lower, with India's SENSEX, Taiwan's TAIEX, Australia's ASX All Ordinaries, Japan's Nikkei, and Hong Kong's Hang Seng all declining, while European markets are down in midday trading and U.S. equity futures point to a flat to positive open as investors remain focused on the 10-year Treasury yield and await comments from Fed officials later in the week.
Asian markets are expected to open defensively following a volatile day in world markets, with a crushing selloff in U.S. Treasuries, political turmoil in Washington, and suspected currency market intervention from Japan.
Equity markets are prone to boom-and-bust cycles, and a recent study suggests that valuations, macroeconomic factors, and technical variables can help predict large drawdowns in these markets, with the US acting as a fundamental driver of global equity market fragility. The research also highlights the importance of expensive valuations in predicting lower future returns and increased market fragility, indicating the need for caution among investors. Increasing allocations to international equities and small-value stocks may help mitigate these risks. However, it's important to approach forecasts with skepticism and consider a wide range of potential outcomes.
Stock markets in Israel and the Middle-East opened with significant losses following an unexpected assault by Hamas on Israel, indicating a potentially unstable week ahead.
Equity markets in Asia are expected to open higher after US shares extended their winning streak and investors focused on less hawkish comments from Federal Reserve speakers.
U.S. stock markets closed mixed as declining consumer confidence and Middle East tensions overshadowed positive earnings from major banks, while Asian markets saw losses ahead of crucial inflation data, and European markets were mostly down.
