Indices for the stocks in Europe have shown some healthy growth, rising somewhat this Monday from the Friday closing values. Investors seem to be keen to hear from central banks in the continent in the coming week when it comes to interest rates. Bank policies could have a major effect on stock performances in the coming week.
Other markets will also be essential to keep track of. The BoJ will also be having meetings soon, which should have effects on the Japanese markets. This market is especially vital since the Japanese yen has blown past the important 150 yen to the dollar point. This is a price point that should indicate that an intervention is likely soon. There will also be the Fed meeting this Wednesday alongside a BoE meeting on Thursday.
Finally, key data points will also be worth keeping track of in Chinese manufacturing and US job data.
Europe’s STOXX 600 went up by 0.7%, while the FTSE 100 in London gained 0.8%, indicating good performance everywhere, including banking stocks. Although generally, the best stocks to invest in 2023 have proved to be in other markets, these areas do not seem to have fared quite as positively.
Global Stock Market Expectations Amid CB Rate Hikes
Investors are hoping to see signs that central banks have reached the peak of their rate hikes. They are mainly looking for signs that the banks will be cutting down on rates somewhere in the middle of next year. However, it may be a while until any concrete indications come out.
The MSCI index for markets across the world went up 0.3%. Despite the increase, this is still the lowest point it has been at since March. The MSCI for the Asia-Pacific region specifically showed a 0.1% increase for the stocks in the region, excluding Japan.
In fact, in Japan itself, there was a considerable decrease of 0.95%. As we stated earlier, there have been considerations as to whether the BoJ will make alterations in the market in Japan. This doubtless is the main influencer on the current situation.
