London, UK – European stocks are poised to follow the upward trend of Asian markets, overshadowing uncertainties stemming from the policies of President Donald Trump. The Euro Stoxx 50 is expected to rise by 0.5%, while US equity futures show a slight retreat. Meanwhile, the MSCI Asia Pacific Index has been climbing for three consecutive sessions. In Hong Kong, benchmark stocks surged over 2%, with Japanese gauges also seeing an increase of more than 1%.
Amid US stocks entering a correction phase earlier this month, global investors are now looking towards non-US assets for opportunities. German lawmakers are set to vote on a bill that could unlock billions of euros in defense and infrastructure spending, reflecting a shift towards expansive fiscal policy in Europe. Gold prices have reached a new all-time high above $3,017 per ounce, while the yield on 10-year Treasuries remains stable as the Federal Reserve begins a two-day policy meeting.
In Asia, Chinese tech stocks continue to be in high demand, with Xi Jinping’s upcoming visit to Washington potentially providing a catalyst for China’s stock market rally. Warren Buffett’s Berkshire Hathaway increasing its stake in Japanese trading houses has also pushed the market higher. The Bank of Japan is likely to maintain its policy rate at 0.5% during its upcoming decision. The yen has seen a drop against the dollar for the third consecutive day, nearing the 150 mark.
Market strategist Homin Lee noted that favorable rhetoric from Beijing and increased investment activities, such as Warren Buffett’s, are boosting sentiment in Asian stocks. Despite concerns about a weakening economy, Indonesian stocks experienced a significant drop, leading to a temporary suspension of trading for 30 minutes.
In the US, retail sales in February were lower than forecasted, with the previous month’s figures being revised downwards. However, control-group sales, which play a role in the government’s calculation of goods spending for GDP, saw a 1% increase last month. Economists anticipate policymakers to closely assess the impact of Trump’s trade policies on the economy in the wake of slowing economic growth. Fed officials are expected to maintain rates during their upcoming meeting, with a focus on updated economic projections and Chair Jerome Powell’s press conference.
In the commodities market, oil prices have been rising due to escalating tensions in the Middle East, overshadowing concerns about a global glut. Key events for the week include various economic indicators and central bank decisions from the US, Japan, China, and the UK. Stocks in the S&P 500 and Nasdaq 100 futures fell slightly, while the MSCI Asia Pacific Index and MSCI Emerging Markets Index saw gains. Cryptocurrencies like Bitcoin and Ether experienced minor declines, while bond yields and commodity prices remained relatively stable.