Ipek Ozkardeskaya
Swissquote Bank Ltd
The week kicked off with another bull run in Chinese stocks on further stimulus news. The Chinese stocks extended their rally, iron ore gained, the AUDUSD, preparing to test the 0.70 cents level as Australian stocks extend rally to fresh ATH.
Over in Europe, growth and China-sensitive European stocks are also having their share of the Chinese pie. The Stoxx 600 index closed the week at an ATH. LVMH gained 20% in just a week.
In separate news, inflation data from France and Spain came in lower than expected. More figures are to flow in between today and tomorrow to keep the EURUSD offered near the 1.12 level – even against a broadly softening US dollar. US dollar remains under pressure after last Friday’s soft PCE reads, and before this week’s jobs data.
Across the Channel, Cable consolidates a touch below the 1.34 level and the FTSE 100 is better bid. Even oil – shattered by Saudi’s decision to focus on expanding market share - seems to be boosted by the Chinese stimulus news since last Friday.
In Japan, mood is totally different since last Friday. Last week’s elections in Japan resulted in a surprise win of Shigeru Ishiba, who is known for his preference for higher interest rates.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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