Global Market – European Market at fresh 52-week high & China’s recovery slows
This week we will discuss, despite U.S. uncertainty on debt ceiling limit and crisis in U.S. regional banks, European market continue to make fresh high. Germany’s DAX made fresh 52-week high this week. Japan’s Nikkei surges to 33-year high, seen at highest level since 1990. China’s economic recovery fails to keep momentum on fear of global growth.
Germany’s DAX at fresh 52-week high
European shares rose on Friday, with Germany’s DAX 40 index solidifying its gains above the 16,200 level and reaching a new 16-month high, fueled by growing optimism that a resolution regarding the US debt ceiling was on the horizon.
JAPAN’S NIKKEI 225 SURGES TO 33-YEAR HIGH, ENDS AT HIGHEST LEVEL SINCE 1990
Asia-Pacific stock markets closed on a mixed note on Friday, marking the end of a tumultuous week influenced by a variety of factors, including concerns over the US federal debt ceiling.
China’s April data show economic recovery losing steam, testing policymakers
Tuesday’s batch of data, which also showed a further decline in property investment, adds to concerns about the outlook for the world’s second-biggest economy as both its domestic and export engines of growth remain underpowered.
Equichain Wealth Advisors: Market View & Opinion
We believe equity market continue to ignore the negative economic factors in near terms as they focus on earnings season. Most of the companies came with decent set of result except few disappointments as market went into earning season with low expectation.
We do believe this trend can’t continue for long, on one hand there is debt crisis and on other hand interest rate continue to rise although at declining pace and market continue to trade near its recent high.
Either there should be pivot as far as interest rate policy is concern or market should witness sharp correction from current level which could reflect current economic data.