- Asian equities were neutral, but US and European share futures rose as investors awaited interest rate decisions from the US, Europe, China, and Japan this week. Major currencies and Treasuries saw little movement.
- The Topix index in Japan rose 0.7%, while the Hong Kong benchmark varied. After the underlying index advanced deeper into bull-market territory on Friday, futures for the Euro Stoxx 50 rose 0.4% and contracts for the S&P 500 gained 0.1%.
- Worries over China's development persist, while technology stocks in the US have continued to rise on speculation that the Federal Reserve is reaching the end of its raising cycle. Positioning in the rate markets suggests that the Fed will increase again, but this time next month rather than this Wednesday.
- Yet there is also concern that the Fed’s ten hikes have done damage, which has bond managers including Fidelity International to Allianz Global Investors forecasting an economic downturn. Meanwhile, unexpected hikes last week from the BoC and the RBA have added an extra element of uncertainty.
- The ECB is expected to raise its benchmark rate on Thursday, while China may reduce its medium-term lending facility on the same day, and the Bank of Japan is predicted to remain unchanged on Friday.
