A global stock market rally is expected to gain momentum in Asia after China said it would take steps to stimulate consumption in the world’s second-largest economy. Stock futures in Australia, Japan and Hong Kong all rose, tracking gains in the United States.
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| The S&P 500 index rose 2.1% on March 14, while the tech-heavy Nasdaq 100 index also rose 2.1%. Illustrative photo |
The S&P 500 rose 2.1% on March 14, while the tech-heavy Nasdaq 100 also rose 2.1%. The Golden Dragon Index of Chinese stocks rose 2.7%. The dollar was steady.
The rally follows a global sell-off that began in mid-February, which peaked with a 10% drop in U.S. stocks from their highs last week. Global and U.S. stock indexes fell to their lowest levels since September last week before rebounding.
Chinese stocks have outperformed, trading at their highest since December after setting an ambitious growth target of around 5% this year amid excitement over artificial intelligence (AI). Traders are now hoping the rally will last after Xinhua, the official news agency of the Chinese government, reported that the government will detail policies to stabilize the stock and property markets, raise wages and boost the country's birth rate.
The S&P 500's March 14 rally was its strongest since the November presidential election.
As demand for haven assets fell, U.S. Treasury yields rose across the board, led by German bonds after incoming German Chancellor Friedrich Merz announced on March 14 that a deal had been struck with the Greens on a debt-financed infrastructure and defense spending package. The euro rose for a second straight week, holding near its strongest level against the dollar since November ahead of a vote on the plan on March 18.
" Germany's spending package is robust and could pave the way for other EU countries to make similar moves ," strategists at international banking and financial services group Barclays said in a note to clients.
The Bank of Japan is expected to hold interest rates steady after last month’s hike, and the Bank of England is also expected to keep policy unchanged. Federal Reserve Chairman Jerome Powell will face the difficult task of reassuring investors that the economy remains stable while also showing that policymakers are ready to intervene if needed.
" Markets will pay particular attention to the updated Summary of Economic Projections (SEP)," strategists at Commonwealth Bank of Australia, one of Australia's largest banks, wrote in a note to clients. " This could lower the Fed's economic growth forecast and slightly revise up its core inflation forecast ." However, the dot plot - a chart showing Fed members' interest rate forecasts for the end of each fiscal year - could remain unchanged if Federal Open Market Committee (FOMC) members consider the increase in core inflation to be temporary.
In commodities, oil prices recorded their first weekly gain in eight weeks on March 14. Gold prices fell on March 14, the first decline after four consecutive days of gains, amid risk sentiment.
| The S&P 500 rose 2.1% on March 14, while the tech-heavy Nasdaq 100 gained 2.1%. The Golden Dragon Index of Chinese stocks rose 2.7%. The dollar was steady. The rally follows a global sell-off that began in mid-February. |
Source: https://congthuong.vn/chung-khoan-chau-a-truoc-dong-thai-kich-khich-tieu-dung-cua-trung-quoc-378689.html
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