Asian shares saw a slight increase on Tuesday, while the dollar continued to weaken for the third consecutive session. This comes as expectations of a European rate cut rise, boosting risk appetite among investors. However, gains were limited as investors await key inflation readings later in the week.
European markets are expected to open slightly stronger, with EUROSTOXX 50 futures up 0.2%. The European Central Bank’s indication of potential interest rate cuts due to slowing inflation has influenced market sentiment. Wall Street stock futures also rose in anticipation of two rate cuts by October this year.
In Asia, the MSCI broadest index outside Japan rose 0.2%, following a 0.9% increase on Monday. While Taiwanese shares reached a record high, Japan’s Nikkei slipped 0.2%. Analysts suggest that the Hang Seng has room for further growth, supported by positive data on the Chinese economy.
Looking ahead, key events this week include U.S. figures on core personal consumption expenditures and eurozone inflation data on Friday. The dollar remained weak against major currencies, while oil prices and gold prices saw gains.
Overall, market participants are cautiously optimistic as they navigate through potential rate cuts and economic data releases. The global economy continues to show signs of recovery, albeit with some uncertainty.
Vocabulary List:
- Consecutive (adjective): Following continuously in order.
- Anticipation (noun): The act of looking forward to or expecting something.
- Sentiment (noun): A view or attitude towards a situation or event.
- Optimistic (adjective): Having a positive outlook on a situation.
- Uncertainty (noun): The state of being unsure or not definite.
- Influence (noun): The capacity to have an effect on the characterbehavioror development of someone or something.
