That suggests to us that sentiment towards the country's market is still not overly optimistic, leaving room for further gains over the rest of this year." "Second, the valuations of equities in China generally still look quite low. This should give a boost to corporate earnings. "First, while we do expect China's recovery to slow, we think the strong economic momentum will keep growth fairly strong over the rest of this year," they write. However, the consultancy still expects China's equity markets to make further gains this year. "Part of the reason China's rapid economic rebound hasn't led to a renewed market rally over the last month could be that investors fear it will be offset by a smaller policy stimulus," Capital Economics market economists write in a note. In the second quarter, MSCI's China Index (.dMICN00000PUS) is down around 6.5% to date, while the MSCI World Index I IACWI is broadly flat. GRAPHIC-Too high for comfort: Five questions for the ECBĭON'T COUNT OUT CHINA JUST YET (0940 GMT)Ĭhinese equity markets will make decent gains in 2023, Capital Economics expects, even though the rebound in economic activity in the country after the end of some of the world's strictest COVID-19 restrictions, has done little to boost them so far. The German 10-year yield was last at 2.259%.īelow a snapshot of ING's ECB scenario analysis.ĮCB to raise interest rates for a seventh time in inflation fight The euro was last flat on the day at $1.106, having jumped almost 0.6% on Wednesday. Likewise, the 10-year Bund yield (DE10YT=RR) is seen swinging between 2.20% to 2.70%, respectively. ING sees the euro EURUSD slipping to $1.08, under a dovish outcome of the policy meeting, and rising to $1.12 in a very hawkish scenario. Any change in wording and comments from ECB President Christine Lagarde at the press conference at will also be closely watched. It's almost certain that in around 1 hour the European Central Bank will deliver its seventh rate rise in a row but the size of the move is still somewhat uncertain.Ī 25 basis-point hike is fully baked in but a 50 bps move isn't ruled out either and that could see big market swings. Profit beats push Shell, Equinor higherġ HOUR TO GO: POSITIONING FOR ECB OUTCOMES (1112 GMT).
0 kommentar(er)
