That came as financial markets made a mixed start with US stock futures rising but the dollar wavering ahead of a week driven by data, Chinese earnings and the threat of steep US tariff hikes on the horizon.
S&P 500 futures were up about 0.6 percent in the morning and Nasdaq 100 futures rose 0.8 percent. Japan’s Nikkei climbed about 0.2 percent.
The week holds global purchasing managers index gauges, the US Federal Reserve’s preferred inflation reading, inflation data in Australia and Japan, a budget update in Britain and major earnings in China.
But it is likely to be updates on US President Donald Trump’s plans to for global reciprocal tariffs from April 2 that drives markets, and after a volatile month for stocks, bonds and currencies, analysts said there is no obvious trade ahead.
“It’s very difficult to really devise a structural playbook,” said Chris Weston, head of research at Pepperstone.
“You’ve got to put your mind into the head of the consumer and households,” he said, since it has been fears of a slowdown in the world’s biggest economy that has led to weeks of selling dollars and stocks and a strong rally for Treasuries.
“Anything that feeds into this higher probability of recession, higher probability of a stagflationary environment … or that price pressures aren’t transitory is where we start to get panicky a bit.”
Trump has vowed to impose a complicated barrage of tariffs, the details of which are not clear save that they are to be calculated to reflect the impact of foreign tariffs as well as foreign value-added taxes on imports.
Hong Kong shares are up 18 percent so far this year, the largest gain of any major market, but a drop of 4.4 percent over two sessions late last week pointed to a pause in the flow of money while traders consider their, and Trump’s, next moves.
Earnings at automaker BYD, video platform Kuaishou as well as Chinese banks and several property developers will be in focus. In the United States, discount retailer Dollar Tree and up-market athletic clothier Lululemon are on the calendar.
Gold sat just shy of last week’s record high, buying US$3,021 an ounce, while bitcoin held at US$85,860. (Reuters/Xinhua)
