Il Nuovo Postiglione - Global stocks mixed ahead of ECB decision, US inflation data

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Global stocks mixed ahead of ECB decision, US inflation data

ECONOMY 08.04.2024

Global stocks mixed ahead of ECB decision, US inflation data / Photo: Charly TRIBALLEAU - AFP

Global equities were mixed Monday at the start of a busy week that will feature a eurozone interest rate decision, the kickoff of earnings season and key US inflation data.

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After a positive round in most Asian indices, major European bourses posted solid gains, while a meandering session on Wall Street ended with little changed.

"Today we moved sideways," said Steve Sosnick of Interactive Brokers, who said attempts early in the day to rally fell flat before eclipse fever took hold.

"In the afternoon, I really do think a lot of people were just as focused on the Sun and the Moon as they were on the markets because the volumes were pretty light today," said Sosnick, alluding to the mass exodus in many workplaces of staff drawn to the rare solar event.

Both Paris and Frankfurt enjoyed gains.

The European Central Bank is again to keep borrowing rates unchanged on Thursday. But the Frankfurt-based institution has been signaling a change could be near in light of improving inflation data.

Thursday's ECB meeting "looks like the prelude to yet another turning point for monetary policy in the eurozone: final stop before the cut," said ING bank economist Carsten Brzeski.

The ECB's benchmark deposit rate currently sits at a record four percent, following an aggressive hiking campaign to rein in consumer prices driven higher by Russia's war in Ukraine and pandemic-related supply disruptions.

Eurozone inflation, which peaked at over 10 percent in late 2022, has steadily declined in recent months and is now expected by the ECB to return to target in 2025.

Later this week, market participants will also seize upon hotly-awaited US inflation data that could shed light on the Federal Reserve's monetary policy outlook.

The US calendar also includes the kickoff to first-quarter earnings season, with JPMorgan Chase and other large banks reporting results on Friday.

In his annual letter to shareholders, JPMorgan Chief Executive Jamie Dimon suggested that US equity markets were overvalued, pointing to "persistent inflationary pressures" that could lift interest rates further and dent the outlook.

Elsewhere, Gold prices spiked as high as $2,353.95 per ounce on Monday to extend its record-busting streak, buoyed by its haven qualities amid ongoing Middle East turmoil.

Oil prices retreated after several positive sessions.

For Briefing.com's Patrick O'Hare the corporate earnings season that kicks off later this month "will be the litmus test" for the stock market rally.

"The stock market has kept its bullish posture amid some burgeoning confidence that earnings (and earnings expectations) will hold up given economic data that continue to surprise, in aggregate, to the upside," he said in a note to clients.

- Key figures around 2020 GMT -

New York - Dow: DOWN less than 0.1 percent at 38,892.80 (close)

New York - S&P 500: DOWN less than 0.1 percent at 5,202.39 (close)

New York - Nasdaq Composite: UP less than 0.1 percent at 16,253.96 (close)

London - FTSE 100: UP 0.4 percent at 7,943.47 (close)

Paris - CAC 40: UP 0.7 percent at 8,119.30 (close)

Frankfurt - DAX: UP 0.8 percent at 18,318.97 (close)

EURO STOXX 50: UP 0.6 percent at 5,046.05 (close)

Tokyo - Nikkei 225: UP 0.9 percent at 39,347.04 (close)

Hong Kong - Hang Seng Index: UP 0.1 percent at 16,732.85 (close)

Shanghai - Composite: DOWN 0.7 percent at 3,047.05 (close)

Dollar/yen: UP at 151.85 yen from 151.62 yen on Friday

Euro/dollar: UP at $1.0861 from $1.0837

Pound/dollar: UP at $1.2656 from $1.2638

Euro/pound: UP at 85.80 pence from 85.75 pence

Brent North Sea Crude: DOWN 1.0 percent at $90.38 per barrel

West Texas Intermediate: DOWN 0.6 percent at $86.43 per barrel

burs-jmb/dw

E.Scozzafava--INP

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