A Surge in Global Share, Issues in Economic Growth

The global market edged higher on Monday despite concerns over economic growth and inflationary pressures.

Stock Index Analysis

• France’s CAC 40 was up less than 0.1% to 5,522.58 in early trade.
• The German DAX gained 0.2% to 15,830.74.
• Britain’s FTSE 100 rose0.5% to 7,911.91
• US stocks were expected to rise, while,
• Dow futures were up less than 0.1% to 4,168.75.

Traders are focused on upcoming company earnings reports and are concerned about how inflation could affect interest rate moves by the Federal Reserve and other global central banks.

“Profit expectations for the quarter are not brilliant,” according to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. “But the good news is that expectations are fueled by conversations with executives, who like to sound pessimistic, so despite poor performance, the market reaction can be positive if results are better than expected.”

Japan Index Analysis

• The Nikkei 225 increased by 0.1% to 28,514.78
• Australia’s S&P/ASX 200 increased by 0.3$ to 7,381.50
• South Korea’s Kospi increased by 0.2% to 2,575.91
• Hong Kong’s Hang Seng increased by 1.7% to 20,782.45
• The Shanghai Composite increased by 1.4% to 3,385.61.

Markets suffer from the heat more than the light, as the over-sensitivity of Fed policy forecast to the US data continues to fuel massive volatility, said Tan Boon Heng at Mizuho Bank.

China’s central bank left its annual medium-term interest rate unchanged at 2.75%, suggesting that economic growth data released on Tuesday will not be too worrying.

According to Stephen Innes, Managing Partner at SPIU Asset Management, investors remain concerned about subdued inflation, suggesting a modest recovery in demand after reopening. As a result, sentiment remains optimistic, bolstered by the high risk of a post-recession downturn.