On its own stage across the Atlantic from the US Fed, the ECB (European Central Bank) has had its own quantitative easing program.
Risk aversion is on the rise again as investors begin to question President Trump’s trade policies and as we’ve begun to see changes in asset allocations.
After falling for two consecutive trading weeks, the S&P 500 started the week on a stronger note by rising on April 17. All 11 major S&P 500 indices rose.
After starting the week on a lighter note, China’s Shanghai Composite Index opened lower and fell as the day progressed on Tuesday.
The improved growth in emerging markets was led by a cyclical recovery in Brazil (EWZ) and Russia (ERUS).
Emerging markets started on a weak note in 2016, as equities dropped in concert with concerns around China’s economy and falling oil prices.
Emerging markets are becoming increasing important in the global economy, as they account for about 75% of global output and consumption.
The most important indicators for this week are the US consumer price index and US retail sales.
India’s services PMI stood at 51.5 in March 2017, compared to 50.3 in February 2017, meeting market expectations.
Japan’s manufacturing PMI stood at 52.9 in March 2017, compared to 51.3 in February 2017, meeting market expectations.
The final UK Services PMI stood at 55 in March 2017 compared to 53.3 in February. The PMI figure was above market expectations of 53.5.
Caixin China’s services PMI (purchasing managers’ index) stood at 52.2 in March 2017 compared to 52.6 in February.
The final Eurozone services PMI (purchasing managers’ index) stood at 56 in March 2017 compared to 55.5 in the previous month.
The final Markit France services PMI stood at 57.5 in March 2017 compared to 56.4 in February. This was below than the initial estimate of 58.5.
The March US services PMI report indicates softness in the US business environment. The PMI stood at 52.8 in March compared to 53.8 in February 2017.
The final Markit Germany services PMI (purchasing managers’ index) stood at 55.6 in March 2017 compared to 54.4 in February 2017.
The ADP National Employment Report for March 2017 was recently released, showing improvement in the labor market.
The March non-farm payroll employment in the United States (SPY) (SPXL) saw a rise of only 98,000 jobs in March 2017, compared to 235,000 jobs in February.
China’s final manufacturing PMI (purchasing managers’ index) stood at 51.8 in March 2017 compared to 51.6 in February, beating market expectations of 51.6.
Japan’s manufacturing PMI (purchasing managers’ index) stood at 52.4 in March 2017 compared to 53.3 in February.