Majid Rahimi (Soheil) on LinkedIn: #euro #eurozone #dax40 #stockmarket #interestrate #market #economy (2024)

On Friday, as G7 leaders gathered in Hiroshima, the benchmark Nikkei 225 index rallied to its highest level since 1990, after smashing through 30,000 earlier in the week. Japan’s stock rally has been powered by strong corporate results, a weaker yen and an economy that is starting to show signs of rebounding consumer spending after the pandemic.Optimism was boosted by news that the world’s third-largest economy grew at an annualised rate of 1.6% in the first quarter of the year, twice as fast as expected, lifting the country out of recession after two straight quarters of contraction in the second half of 2022.

https://lnkd.in/gPNtPHrhRecently, however, there are signs that the European economy is slowing down. The most recent data showed that Germany has entered a recession as manufacturing activity slows. Manufacturing PMI has remained below 50 in the past six months.Other European countries are not doing well either. Data by Eurostat showed that the Eurozone entered a recession in the first quarter. France recorded close to zero economic growth during the quarter.The bond market is also signaling to more weakness ahead. The spread between the 2-year and 10-year bond yields in Germany has crashed to the lowest level in more than three decades. Historically, the inverted yield curve is one of the most accurate indicators of a recession.#Germany #eurostat #Index #Europe

Markets returns in January provided mixed results globally. Large-cap growth-oriented stocks saw the most gains in the U.S. Small-cap stocks struggled despite positive economic data that revealed a fourth-quarter GDP growth of 3.3%, improving manufacturing data, and a robust labor market. European indices struggled as the Euro Area reported a fourth-quarter GDP of 0% and contractionary production numbers. However, Japan uplifted overall international returns from strong advances in their market returns. Read the DeMarche Dashboard, our monthly flash report, for more insights on recent events and a data-driven overview of domestic and international markets and economies.#demarche#institutionalinvestors#markets#inflation#equities#globalmarkets#equities#fixedincome#europe#euro#eurozone#china#federalreserve#interestrates#economy#emergingmarkets#msci

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On Friday, as G7 leaders gathered in Hiroshima, the benchmark Nikkei 225 index rallied to its highest level since 1990, after smashing through 30,000 earlier in the week. Japan’s stock rally has been powered by strong corporate results, a weaker yen and an economy that is starting to show signs of rebounding consumer spending after the pandemic. #economy #leaders #longsandsfinancialplanninghttps://lnkd.in/e3eDNkjz

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On Friday, as G7 leaders gathered in Hiroshima, the benchmark Nikkei 225 index rallied to its highest level since 1990, after smashing through 30,000 earlier in the week. Japan’s stock rally has been powered by strong corporate results, a weaker yen and an economy that is starting to show signs of rebounding consumer spending after the pandemic.#japan #g7summit #g7hiroshima #economy

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UPDATED MON, MAY 29 2023 3:57 AM EDTAsia markets mixed after U.S. reaches debt ceiling deal; Japan stocks at highest since July 1990#markets #china #australia #leaders Asia-Pacific markets were mixed after U.S President Joe Biden and congressional leaders reached a tentative deal to raise the debt ceiling over the weekend. The bill is expected to be voted on later this week.In Japan, the Nikkei 225closed 1.03% higher at 31,233.54, after an early surge saw the index jump as much as 2.04% on Monday. The Topix also gained 0.69% to snap a four day losing streak and close at 2,160.65In Australia, the S&P/ASX 200climbed 0.87% to end at 7,217.4 and continue a rally that started on Friday, while South Korea was closed Monday for a holiday.Hong Kong’s Hang Seng index continued sliding to new lows this year, falling 0.92% in its final hour of trade.In mainland China, the Shanghai Composite rose 0.2% to end at 3,221.45 to record a second straight session of gains, but the Shenzhen Component fell 0.8% to close at 10,822.09, its lowest level since Nov 1, 2022.Page 1 continueTOKYO, JAPAN - SEPTEMBER 19: A general view of the Tokyo Tower and city on September 19, 2019.Clive Rose - World Rugby | World Rugby | Getty Images

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Earnings season is in full swing, and the market is whipsawing just as we'd expect. While companies continue to report, here's what we're watching 👇China’s Caixin manufacturing PMI slumped back into contraction territory, underscoring how growth in the country remains tepidAs the market rally continues to widen its breadth to include many more companies, the S&P valuation bears seem to be running out of oxygen.The Financial Times reported that there are currently billions of dollars still sitting "on the sidelines" (mainly in cash, money market funds, and bonds) that could be deployed in coming months into equities.New money in the new month may help the bulls today but markets are entering a seasonal time of flat to weaker prices--best to remain wary, alert and very, very nimble.#Markets #Investing #Economics

Asia-Pacific Bounces BackAfter generally declining on Wednesday, Asia-Pacific markets saw a recovery on Thursday. However, because of its GDP contraction for the second consecutive quarter, Japan has officially entered a technical recession. Thursday's opening of European stock markets is anticipated to be positive as investors examine the UK's fourth-quarter GDP statistics and monitor corporate results. As Wall Street attempts to maintain the modest increase, US stock futures held steady on Thursday morning ahead of the publication of important economic data.www.abetglobal.com | +44-7548-718055

Japanese equity returns reach heights not seen since the boom in the late 1980s. The question is whether the index can continue its bull run? Most analysts see little reason to fear the forces driving the Nikkei up 45% over the last 12 months will disappear anytime soon. These include: 1) zero interest rates, 2) the return of inflation giving companies greater pricing power, 3) corporate governance reforms and 5) Japan’s role as a safe haven as China slows.Yet there’s reason to worry that investor exuberance is running ahead of economic fundamentals. Japan’s economy slipped into recession Q4-23, contracting -0.4% YoY after GDP shrank -3.3% YoY in Q3-23.Most of the downside was driven by weak domestic demand, with both households and businesses cutting spending for a third straight quarter to cope with rising cost-push inflation and higher wages and overhead costs in the case of corporates. This is complicating the Bank of Japan’s 2024 outlook, as it entered the year planning to end 23 years of QQE policy. The combination of recession and slowing growth in China, Japan’s top trading partner, may lower the odds of an earlier exist to QQE. My views via Nikkei Asia:

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In the second quarter of this year, Japan posted bumper growth figures; up 6% year-on-year, with the IMF anticipating the economy will grow by 1.4% this year – faster than Europe and the US. Meanwhile, the country’s Nikkei 225 has overtaken most other global market indices in 2023 to become the best performer to date.This turning point in the country’s fortunes is significant as for so long it struggled to return to form after the so-called asset price bubble of the 1980s and a prolonged deflationary period that followed.For investors, there is a question as to how far the economy is set to grow in 2024, and how they can take advantage of one of the most exciting opportunities in the region for some time.Join Investment Week and Nikko Asset Management and Goldman Sachs Asset Management as we explore these opportunities and more in Investment, Talks: Japan: https://lnkd.in/eGfUWGqR

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