Rising bond yields and weakness in tech growth stocks has continued to hold back the advance of the global equity market in recent weeks.
On Friday the US market managed a turnaround in the cash trading session, rallying sharply intraday to close notably higher (e.g. Philly SOX +3.1 per cent, S&P500 +1.9 per cent).
In the UK, the FTSE100 & 250 were both down on Friday. Given the poor past few weeks, markets are now oversold and increasingly fearful. All of which begs the question as to whether this is now a buying opportunity (for traders & investors alike).
Key events this week include an ECB meeting and monetary policy announcement (Thursday). There will also be a press conference and updated economic projections.
On Wednesday, the global data has an inflation focus with both the US & China releasing their latest consumer price inflation data. Those countries also both release producer price inflation data this week.
Elsewhere the Chinese National People’s Congress is ongoing for the first part of the week, whilst the Chinese key monthly bank lending and money supply data is released this week as well. President Biden is expected to sign the latest stimulus package into law later this week, following its passage through the Senate over the weekend.