After the 7-day Spring Festival holiday, the Chinese stock market resumed trading on Monday. However, Asian stock markets have been on the defensive this week, and investors have not been able to get rid of global growth, US political and trade concerns.
This week, the financial market will usher in a series of risk events.
For the new week market prospects, the agency FXTMAnalystThe author analyzes and predicts the article as follows:
At the beginning of 2019, there was a strong rebound in risk assets, but anxiety and worries about global economic growth have come back.
This was evident in last week's foreign exchange market, and despite the Fed's attitude to the doves, the funds returned to the US dollar.
European stock markets suffered a setback, and the Stoxx 600 index ended its five-week gains. At the same time, US investors are beginning to worry about corporate profits falling, and may even appearPerformancedecline.
A better way to measure economic and financial conditions is to look at pricing for fixed income markets.
Japan’s 10-year bond yields fell below zero again. German 10-year bond yields were at their lowest level since October 2016, and US 10-year bond yields were down 19.3% from their peak in October.
While this does not necessarily mean that the recession is coming, the fixed-income market is showing a significant slowdown in global economic growth.
The time for Brexit is also rapidly passing. It is only 46 days from the UK's plan to exit the EU. No one knows what will happen next and what version of Brexit will happen.
This week, Prime Minister Theresa May needs to issue a statement to the parliament stating what progress has been made and there is no significant progress from what is known.
Members of the British Parliament are likely to move a motion calling for greater control over the Brexit process and may extend the deadline for Article 50 of the Lisbon Treaty.
If you go further than the continuation deadline, the pound may rebound to above $1.32.
In terms of data, the latest UK 4th quarterGDPThe data fell short of expectations, and the pound extended its decline in the short term.
This week, the US is also welcoming key data, which will be announced on Wednesday.CPIInflation data, which will further reveal whether the Fed’s judgment on the US economy is accurate. Retail sales are another important piece of data that will have an opportunity to see if the recent stock market turmoil has affected consumption habits.
(Article source: FX168)