Dear clients,
Global equities rose to a two-week high on Monday and Japan’s Nikkei index closed at its highest level in 33 years, supported as lower inflation could dampen central banks‘ appetite for further rate hikes.
European shares rose (.STOXX) and US stock futures pointed to a positive opening for Wall Street, which is closing early in the run-up to the July 4 holiday.
In Asia, a Bank of Japan survey showed improved business sentiment in the second quarter, while the Caixin Manufacturing Business Activity Index fell to 50.5 from 50.9 in May, indicating a slowdown in factory activity in China. This beat market forecasts slightly but highlighted a weakening economic trend.
US data released on Friday, hinting at a cooling of inflation, boosted the technology sector and supported sentiment in global stock markets. As a result, the Nasdaq posted its biggest first-half gain in 40 years on Friday. Apple closed with a market valuation of $3 trillion for the first time. Shares in Tesla, which is listed on the Frankfurt exchange, jumped 5% after the electric carmaker said on Sunday it delivered a record number of cars in the second quarter.
The MSCI World Stock Index rose 0.25% to its highest level in just over two weeks, while the pan-European STOXX 600 index also hit a two-week peak.
China blue-chip shares (.CSI300) rose on hopes of further policy easing after the country’s central bank said it would pursue cautious monetary policy in a „precise and decisive manner“ to support economic growth and employment.
