The Stoxx 600 index in Europe maintained its recent advances, while US futures saw a 0.2% increase. Asian markets surged, and when authorities outlawed short selling, South Korea’s Kospi ended more than 5% higher. On the fourth day, the dollar declined. After Saudi Arabia and Russia confirmed they will continue their production cuts through the end of the year, crude prices increased by more than 1%.
Recent US data suggesting a weakening economy has given global markets more stability and prompted traders to anticipate lower rates by June. Later this week, Federal Reserve Chair Jerome Powell and Bank of England Governor Andrew Bailey are expected to give speeches that will provide more insight into how officials assess the direction of inflation.
Investors have a little more reason to believe that the Fed is likely done raising rates, but they still need to be cautious, according to Vasu Menon, managing director of investment strategy at OCBC Bank Singapore, who made this statement on Bloomberg Television. “Bond yields could rise again if the economy shows to be more resilient and if inflation proves to be more stubborn.”
According to Michael Wilson of Morgan Stanley, the market’s rebound last week was more akin to a bear market rally than the beginning of a long-term upswing, especially in light of the negative earnings revisions and macro data.
Ryanair Holdings Plc had a 6.3% increase in stock market movement following the announcement of its first regular dividend. Pre-market trading saw a rise in Tesla Inc. following Reuters’ story that the firm would be manufacturing a new, more reasonably priced electric car model in Germany.