The global stock market shows promising trajectory with MSCI’s all-country stock index rising for nine days consecutively, marking the longest gain series since December 2024. This growth incites an increased confidence among shareholders. Improved corporate earnings, positive economic forecasts, and favorable policy actions are among the contributing factors propelling this trend.
Minimal changes marked the financial markets, including Europe’s Stoxx 600 and US futures. Treasury 10-year yields remained steady as the Japanese yen ascended, reaching approximately 146.50 per dollar. Asian markets echoed this stability with key indices standing firm.
A decrease in stock trading volumes reflects cautious investing, with investors holding back substantial investments due to the impending Fed’s Jackson Hole economic symposium. The investment environment presents a distinct trend – caution overrides aggression.
Facing potential growth risks, Europe calls for policy changes, echoing arguments by Governing Council member Olli Rehn and market experts. There are expectations for at least two rate cuts before 2021 year-end.
Promising trajectory of global stocks
This reflects growing financial uncertainties and a sluggish economic performance.
A significant acquisition proposal comes from Alimentation Couche-Tard Inc. to acquire 7-Eleven’s parent company, Seven & i Holdings Co. Potentially worth around $38.4 billion, if successful, this could result in one of the largest ever deals for a Canadian company. The proposed acquisition could have far-reaching implications for the global retail sector.
In the commodities sector, Asian currencies reached a high point since January while oil saw its largest two-week drop. Gold prices surpassed $2,500 an ounce, largely due to expectations of the Fed decreasing interest rates. Amid these changes, traders eagerly await the release of key economic data likely to sway markets significantly.
Financial sectors worldwide anticipate significant influence from forthcoming economic statistics and fiscal decisions. These include the upcoming US Fed minutes, the BLS’s preliminary annual payrolls revision, the Eurozone HCOB PMI, the consumer confidence report, and ECB’s July rate decision recap. As traders and investors closely watch these events, the global economy prepares for the potential impact of new information.
