USA
Major indexes in the U.S. advanced over the short trading week to end a quarter of strong gains. The S&P 500 Index marked new highs, with an equal-weighted version surpassing expectations. Small-caps outperformed large-caps, while markets were closed on Friday for the Good Friday holiday. News activity was light, except for the collapse of the Francis Scott Key Bridge in Baltimore, impacting shipping access. The shutdown’s broader economic impact remains uncertain. Consumer confidence dipped slightly in March, contrasting with an upward revision of consumer sentiment. Caution prevails amidst anticipation of the upcoming general election. New Treasury issuance was absorbed positively. However, elevated issuance weighed on the tax-exempt municipal bond market amid a weaker seasonal period.
Europe
Most European markets made gains in a week of light trading before the Easter holiday, despite a slowdown in major economies. The UK confirms entering a technical recession, with a 0.3% contraction in Q4 2023. Retail sales in Germany plunged unexpectedly, while economic institutes slashed the country’s growth forecast for 2024. Spain saw a slight uptick in retail sales amidst a decline in industrial producer prices. European consumers grew somewhat more optimistic amidst easing energy worries, with consumer confidence reaching a two-year high. Eurozone consumer sentiment improves marginally, indicating stable economic plans and improving industry confidence.
China
Chinese stocks dipped amidst ongoing concerns about the property sector downturn. Premier Li pledges openness to foreign investment and vows to support growth in key sectors, seeking pro-market reforms for sustained growth. Industrial profits saw a significant increase in the January to February period, aided by policy support and increased overseas demand. Despite deflationary pressures and the property market slump, China’s economy shows signs of gaining traction. However, challenges persist as the country navigates economic reforms and balances growth with stability.
Japan
Japan’s stock markets fell amidst concerns about the depreciating yen, hinting at potential intervention by authorities. BoJ raised rates from negative territory for the first time in seven years, aiming for monetary policy normalization. Inbound tourism surpasses pre-pandemic levels, benefiting from the weak yen. However, uncertainty prevails regarding the timing and extent of future rate hikes. Financial conditions remain accommodative, with expectations converging around further rate adjustments within a one-year period. Despite signs of economic recovery, caution persists as Japan’s monetary policy undergoes significant shifts.
|
Index |
Weekly Index |
Year to Date |
||
|
Currency |
Local |
Sterling Pound |
Local |
Sterling Pound |
|
UK |
|
|
|
|
|
FTSE 100 Index |
0.32% |
0.32% |
3.96% |
3.96% |
|
US |
|
|
|
|
|
S&P 500 Index |
0.40% |
0.16% |
9.42% |
10.99% |
|
EU |
|
|
|
|
|
Euro Stoxx 50 |
1.04% |
0.65% |
11.89% |
10.61% |
|
Asia |
|
|
|
|
|
Hang Seng Index |
0.25% |
-0.04% |
-0.23% |
0.95% |
|
MSCI World |
0.36% |
0.11% |
9.09% |
9.35% |
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