Global Financial Markets today
2023.01.31 02:56
Global Financial Markets today
By Kristina Sobol
Budrigannews.com – After a disappointing 2022, investors are ecstatic by this month’s impressive 6 percent rally in global stocks, which marks the first gain in January in three years.
The International Monetary Fund has slightly raised its outlook for global growth in 2023 due to the fact that fundamentally, the prospects for the global economy are not nearly as bad as people had feared just a few months ago.
The IMF cited lower energy costs, the reopening of China’s economy, and “surprisingly resilient” demand in the United States and Europe.
Nonetheless, investors would be wise to be aware of a gap between expectations and reality.
European shares fell on Monday as stock bulls were uneasy as a result of hotter-than-anticipated inflation data from Spain and an unexpected decline in the German economy in the fourth quarter.
Investors believe that a peak in U.S. interest rates could emerge as soon as this week’s Federal Reserve meeting, which is why Asian equities fell 1% on Tuesday and the dollar was looking at a fourth monthly loss.
Flash GDP data from the euro area and growth data for France and Italy are due. It is likely that the numbers will be closely watched for clues about how weary economies are doing.
Although it is almost certain that the European Central Bank (ECB) will raise interest rates by half a percentage point on Thursday, fresh inflation data are still essential for the ECB’s policy guidance at subsequent meetings.
Rates will be increased by 50 basis points to 4.0% by the Bank of England, respectively. In December, headline inflation fell to 10.5%, but it is still higher than its stated target.
According to bets placed in the money market, the Federal Reserve of the United States will increase its policy rate on Wednesday by 25 basis points to 4.50 percent-4.75%.
In IMF forecasts released on Tuesday, the United Kingdom became the only Group of Seven nation to see its 2023 economic growth outlook cut, adding to the pressure on British finance minister Jeremy Hunt to develop a growth strategy.
This year’s IMF forecast for Britain’s faltering economy, which had previously predicted growth of 0.3 percent, appears to be downgraded to 0.6 percent.
In the meantime, Sanofi (NASDAQ:) won a victory when a federal appeals court in the United States ruled on Monday that drug manufacturers can restrict healthcare providers’ use of outside pharmacies for drug distribution under a federal drug discount program. NYSE: Novo Nordisk as well as AstraZeneca (NASDAQ:
Last but not least, there is good news for tech staff. Some German businesses, confronted with a tight labor market and a shortage of workers possessing essential software engineering skills, are taking advantage of Silicon Valley’s woes as an opportunity to hire top talent.
