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Global stock markets show mixed results on Monday
(MENAFN) Global stock markets showed mixed reactions on Monday as investors attempted to recover from recent turmoil driven by concerns about a potential US recession. The initial upheaval stemmed from disappointing US jobs creation figures from the previous week, which had led to a significant drop in equities. However, equities made a positive turn and ended the previous week on a stronger note, buoyed by a report indicating that fewer people than anticipated had filed for US unemployment benefits. This development helped alleviate some of the fears about an economic contraction in the United States, contributing to a modest recovery in global stock markets.
As the new week began, the recovery momentum continued, though the dollar exhibited a mixed performance against its major rivals. The stabilization in market sentiment was noted by Susannah Streeter, head of money and markets at Hargreaves Lansdown, who highlighted that concerns about an American recession had eased slightly. This sentiment shift has prompted investors to focus on the upcoming release of US inflation data, which is expected to be a key driver of market volatility this week. Analysts suggest that any significant deviation from expectations in the inflation figures could trigger substantial market movements in either direction.
Trade Nation analyst David Morrison pointed out that the market's reaction to the inflation data could be pronounced, given the current volatility. He also noted that US Treasuries continue to attract demand, indicating that investors are cautious about increasing their exposure to equities amid ongoing economic uncertainties. Traders are particularly attentive to potential US interest rate cuts this year, with expectations for a 25 basis point reduction next month and possibly another cut before January, as recent data suggests that inflation pressures may be easing.
In other developments, the Japanese yen weakened against the dollar following the previous week's market fluctuations. Meanwhile, oil prices experienced an uptick, driven by supply risks related to the prolonged conflict in the Middle East and escalating tensions in major crude producer Russia. This increase in oil prices reflects the market's concern over potential disruptions in global oil supply.
As the new week began, the recovery momentum continued, though the dollar exhibited a mixed performance against its major rivals. The stabilization in market sentiment was noted by Susannah Streeter, head of money and markets at Hargreaves Lansdown, who highlighted that concerns about an American recession had eased slightly. This sentiment shift has prompted investors to focus on the upcoming release of US inflation data, which is expected to be a key driver of market volatility this week. Analysts suggest that any significant deviation from expectations in the inflation figures could trigger substantial market movements in either direction.
Trade Nation analyst David Morrison pointed out that the market's reaction to the inflation data could be pronounced, given the current volatility. He also noted that US Treasuries continue to attract demand, indicating that investors are cautious about increasing their exposure to equities amid ongoing economic uncertainties. Traders are particularly attentive to potential US interest rate cuts this year, with expectations for a 25 basis point reduction next month and possibly another cut before January, as recent data suggests that inflation pressures may be easing.
In other developments, the Japanese yen weakened against the dollar following the previous week's market fluctuations. Meanwhile, oil prices experienced an uptick, driven by supply risks related to the prolonged conflict in the Middle East and escalating tensions in major crude producer Russia. This increase in oil prices reflects the market's concern over potential disruptions in global oil supply.
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