Last Week’s Recap
Last week witnessed significant movements in global markets, characterized by a substantial outflow from US stocks—the largest in two weeks since late 2022. Investors withdrew a staggering $21.1 billion from stock funds, citing geopolitical risks and robust US economic data.
In the US, stock indices closed with mixed results on Friday, driven by selling pressure on major technology stocks. While the S&P 500 and US Tech 100 experienced declines, the USA 30 managed to close higher.
Across the Atlantic, European markets displayed a similarly varied performance, with the UK 100 outperforming for the second consecutive week, buoyed by dovish remarks from Bank of England policymakers.
Key Events This Week
US GDP Release – Thursday, 13:30 BST
This week, all eyes will be on the release of Gross Domestic Product (GDP) data for the first quarter of 2024 in the US. Analysts project a decrease from the previous quarter, which could impact the Federal Reserve’s interest rate decisions.
Bank of Japan Meeting – Friday, in the Asian morning
Investors will closely monitor the Bank of Japan’s meeting for any hints of potential monetary policy shifts amid the yen’s persistent weakness.
PCE Inflation Figures – Friday, 13:30 BST
Friday brings the release of the Personal Consumption Expenditure (PCE) inflation figures, critical for the Federal Reserve’s decision-making process. Any deviations from expectations could significantly impact market sentiment and future monetary policy decisions.
As geopolitical tensions remain subdued, investors are poised to react to these fundamental economic indicators, which hold the potential to sway market dynamics in the coming week.
