The market week began with a sense of unease as stock markets in Asia, excluding Japan, were mostly down. Futures suggested that Europe and the United States would also open lower. On the foreign exchange market, the yen had strengthened slightly against other major currencies. Masato Regius, Japan’s Deputy Minister of Economy responsible for currency affairs, stated that Japanese authorities are prepared to intervene in the currency market if necessary.
Despite an interest rate hike in March, the yen continued to show weakness, remaining at historically low levels against the dollar. The dollar was valued at 159.74 yen. This week, the focus is on inflation figures from Japan, Australia, and the United States, particularly the Fed’s PCE deflator. Additionally, political tensions will be heightening with debates in the US presidential race and British prime ministerial race.
In Europe, trade commissioner Valdis Dombrovskis announced that the EU will begin negotiations with China regarding import duties for electric cars. The EU has planned tariffs of up to 48 percent on Chinese electric cars, leading China to threaten retaliation. Meanwhile, Bitcoin fell to its lowest level in more than a month, dropping below $63,000.
Overall, investors are closely monitoring inflation figures in major economies and political developments in key regions such as Europe and North America. Additionally, trade negotiations between major countries like China and the EU are also influencing market movements. The cryptocurrency market is experiencing volatility due to recent declines in Bitcoin prices.
In summary, this week’s market outlook is influenced by various factors such as inflation figures from major economies like Japan and Australia as well as political developments like debates in key races such as US presidential race and British prime ministerial race.
Trade negotiations between China and EU are also expected to have an impact on various sectors such as automotive industry due to import tariffs planned by EU on Chinese electric cars which can lead retaliation from China.
Cryptocurrency Bitcoin continues to experience volatility after falling below $63k mark which shows uncertainty among investors about future price movements of cryptocurrencies.
Overall it’s going to be an interesting week ahead with more clarity expected on these fronts which could influence market movements accordingly.
