The Swiss stock market is expected to drop on Monday.
Of the SMI is shown in red before the market.
The small cap indices SPI and the SLI follow the trend of the leading index.
“Risk appetite is picking up significantly,” said one trader, referring to the lower-than-expected US inflation data for October, which prompted a global price rally the day before. On Friday, surprisingly weak US consumer sentiment underpinned expectations that future Federal Reserve rate hikes could come in smaller increments. The fact that the restrictive corona measures are to be relaxed somewhat in China was also positively received. Technology, commodity, retail and auto stocks were particularly in demand, with their Stoxx sector indices gaining significantly. Pharmaceuticals, food & beverage and telecom stocks were on the loser side at discounts.
The German stock market is expected to be slightly higher on Monday.
Of the DAX appears friendly before the market.
At the highest price level since the beginning of June, the DAX does not appear to be showing any signs of weakness at the beginning of the week. Easing interest rate and inflationary pressures are supporting valuations and stabilizing the technology sector, JPMorgan strategists said this morning. Slightly less strict corona measures in China are added and give the market stability even after its recent price rally.
On Friday, US stock markets moved higher again.
Of the Dow Jones managed a small gain and ultimately gained 0.10 percent to 33,747.86 points after having spent most of the previous trade in the red. Of the NASDAQ Composite was, on the other hand, extremely friendly and was up 1.88 percent to 11,323.33 points at the end of trading.
After the course fireworks on Thursday, Wall Street also went up at the end of the week with the indices – albeit at a significantly slower pace. Hopes of a less rigorous rate hike path by the US Federal Reserve continued to support sentiment. Investors drew new confidence from consumer prices announced on Thursday, the rise in which slowed more in October than economists and stock market participants had expected. This was accompanied by good news from China. There, the strict pandemic restrictions are to be relaxed somewhat, which has been speculated about for a while.
“Weaker than expected inflation has buoyed markets and investors have rushed to invest some of the money they had on the sidelines,” said Richard Hunter, head of markets at Interactive Investor.
Investors now expect the Fed to slow the pace of rate hikes to just 50 basis points at its December meeting after four consecutive 75 basis point hikes. In addition, Fed Funds futures assume that the federal funds rate will peak in the first quarter of 2023.
The stock exchanges in the Far East are going in different directions at the beginning of the week.
In Tokyo he showed himself Nikkei at the close of trading with a minus of 1.06 percent at 27,963.47 points.
In mainland China, he loses Shanghai Composite meanwhile 0.18 percent to 3,081.80 points. In Hong Kong, on the other hand, it is climbing hang seng in places by 1.36 percent to 17,561.84 units (8:00 a.m. CET).
Asian stock markets are showing no clear direction in late Monday trading. Things are looking up on the Chinese stock markets, some of which reached their highest levels in over two months before profit-taking began. Dealers are happy about the relaxed corona measures and help for the badly hit real estate sector. The G20 summit in Bali is not yet a major stock market issue. Indonesian President Joko Widodo is clearly pushing for cooperation and measures to support the ailing global economy.
In addition, there are far-reaching measures to support the ailing real estate sector. China’s central bank and top banking regulator are backing sweeping measures to boost housing demand and supply, the Wall Street Journal reports, citing officials. President Xi Jinping is said to have already approved the measures, according to the informed sources.
Editorial office finanzen.ch / awp / Dow Jones Newswires