Home ›› 28 Feb 2023 ›› Stock
Global shares rose on Monday, but skimmed six-week lows, after another round of data last week forced investors to prepare for higher interest rates in the United States and Europe and there could be more figures to underpin that argument this week.
US manufacturing and services data, as well as a raft of euro zone inflation figures are going to be instrumental in shaping investor expectations for March's central bank meetings.
There are also at least six Federal Reserve policy makers on the speaking diary this week to offer a running commentary on the likelihood of further rate hikes, reported Reuters.
China has manufacturing surveys and the National People's Congress kicks off at the weekend and will see new economic policy targets and policies, as well as a reshuffling of government officials.
The MSCI All-World index of global shares (.MIWD00000PUS) rose 0.1% on Monday, having posted its largest weekly decline last week since late September, dropping 2.6%, thanks to a sizzling rally in the dollar.
The index is heading for a 3% decline in February, after a rally in January saw many major stock indices post their strongest performance for the first month of the year in years.
January's euphoria, which was founded on expectations that the major economies will avoid tumbling into recession this year, has given way to something approaching realism about the outlook for interest rates, which are going to rise by more and stay at those levels for longer than many had previously anticipated.
"We've had a series of really strong macro data come through and I think that's just brought this reality check to the market, which had been completely ignoring it and are actually now on the same page as the Fed, which I think is a good thing," CityIndex market strategist Fiona Cincotta said.
