In 2025, international markets outperformed US stocks, driven by AI-related growth in Asia, increased European defense spending, and a weaker US dollar, with notable gains in South Korea, Japan, Taiwan, and China.
Australia’s largest pension fund plans to reduce its allocation to global stocks due to concerns over artificial intelligence, reflecting a cautious approach to emerging technological risks in investment decisions.
The article discusses the potential US government shutdown, upcoming tariffs, and political tensions, highlighting their possible impacts on markets and economic indicators, with investors cautiously optimistic about the upcoming quarter despite uncertainties.
US and European stock futures rose following the Federal Reserve's quarter-point interest rate cut, with markets remaining cautious about future policy moves. The Fed signaled potential for two more cuts this year amid signs of labor market weakness, while global stocks hit record highs. The market reaction was mixed, reflecting investor uncertainty about the Fed's cautious stance and future rate trajectory.
Global stocks surged following a US-Japan trade deal easing tariff concerns, with Asian markets leading gains and US tech giants preparing for earnings reports amid ongoing trade negotiations and economic uncertainties.
Morgan Stanley has identified global stocks that are poised to benefit from the Nvidia boom, with four of these stocks projected to have more than 50% upside potential.
Citi has identified Nvidia and other global stocks as key players to benefit from the ongoing semiconductor boom, highlighting investment opportunities in the sector.
Global stock markets paused after a week of record-setting gains, with profit-taking and a mixed performance from major indices. Dovish signals from central banks, including a surprise rate cut by Switzerland's central bank and the Bank of England's indication of potential rate cuts, contributed to the market's rally. The dollar struggled to extend gains as U.S. yields ticked lower, while the possibility of more monetary easing in China led to a sharp drop in the yuan. Additionally, U.S. crude and Brent futures fell, while gold prices fluctuated and investment flows into gold reached their highest in almost a year.
Asian markets are starting the week on a cautious note as investors await a slew of Chinese economic data releases and central bank policy decisions from the U.S. and Japan. Last week's global market volatility, driven by a sharp rebound in U.S. bond yields, has left sentiment fragile. The Bank of Japan is expected to raise interest rates for the first time since 2007, while China's data dump on Monday includes key indicators such as business investment, retail sales, industrial production, and unemployment. Signs of recovery in China are emerging, but challenges remain as the country navigates through economic headwinds.
Ned Davis Research predicts a potential correction in global stocks due to excessive investor enthusiasm, but believes a bear market similar to 2020 and 2022 is unlikely. Despite record highs in various equity indexes, the macro outlook doesn't indicate significant inflationary pressures or economic weakness. While investor sentiment is exuberant, historical data suggests a potential pullback as sentiment eases. However, expanding market breadth and increased buying of underperforming stocks may help mitigate losses. Ned Davis Research remains bullish on stocks, recommending a 70% portfolio allocation to equities, despite recent market fluctuations.
European markets are poised for a higher open as investors await the latest U.S. inflation report, with the February consumer price index release being closely watched for its potential impact on the Federal Reserve's interest rate decisions. Overnight, Asia-Pacific markets mostly rose, and Barclays has named three European stocks to consider buying for the upcoming quarter. In European markets, the U.K.'s FTSE 100, Germany's DAX, France's CAC, and Italy's FTSE MIB are all expected to open higher, with earnings reports from Lego and Persimmon and U.K. unemployment figures for January also on the agenda.
Global stocks rose, driven by a rally in technology shares and a steady dollar as investors assessed the possibility of U.S. rate cuts. A warmer U.S. inflation reading led to reduced chances of a prompt rate cut from the Federal Reserve, boosting the dollar and causing a sell-off in the fixed income market. Analysts believe investors are banking on a soft landing for the economy, with resilient U.S. growth and inflation converging towards 2%. Optimism about the growth outlook sent Wall Street stocks higher, with chipmaker Nvidia overtaking Apple as the third-largest U.S. company by market value. Traders are now pricing in an 82% chance of a Fed cut in June, and U.S. retail sales numbers could offer insight into consumer spending in January.
Global stocks fell as traders adjusted their expectations for the pace and scale of rate cuts by the Federal Reserve following an unexpected rise in U.S. inflation. The MSCI All-World index dropped 0.1%, while the dollar and Treasury yields remained strong. The prospect of a steep drop in interest rates waned, leading to pressure on global stocks. Yields on 10-year U.S. Treasuries hit their highest in over two months, and the dollar strengthened. In Europe, the STOXX edged up 0.1%, and Japan's Nikkei fell 0.7%. Oil prices remained flat amid geopolitical tensions, while gold fell to $1,989 an ounce.
Global stocks experienced a decline as optimism waned regarding early interest rate cuts. The shift in sentiment contributed to market volatility, reflecting concerns about the economic outlook.
The stock market rally fueled by the Federal Reserve's decision to hold interest rates steady and signal potential cuts in 2024 continued, with the Dow and other major indexes gaining over 1% and benchmark bond yields falling to four-month lows. Stock futures for all three major indexes rose, and bonds rallied, with 10-year Treasury yields dropping below 4%. Global stocks surged, and commodities, including oil and gold, rallied. The dollar weakened against other currencies, and Bitcoin rebounded from a recent selloff.