According to a Bank of America Corp note citing EPFR global data, investors added about $20 billion to global stocks in the week to May 25, due to inflows into the US, Bloomberg reported. Bond fund outflows reached $5.8 billion.
equities Recovery is staged this week. Global stocks are set to ease a seven-week slump, which made valuations attractive and brought investors back into a market still reeling from inflation and high interest rates, China’s downbeat economic outlook and the war in Ukraine. Overwhelmed by worries.
The dollar fell to a one-month low after minutes from the Federal Reserve suggested it could put the brakes on rapid rate hikes later this year. An optimistic outlook on overnight US earnings from department store operator Macy’s Inc and discount chains Dollar General Corp and Dollar Tree boosted shares.
Minutes of the Fed’s May meeting, released on Wednesday, confirmed two more 50-basis-point increases each in June and July, but policymakers also suggested the possibility of a pause later in the year.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said the market data indicates weakness in the US market showing a kind of standstill.
“Fed minutes suggest a halt to the end of the year after front-loading rate hikes. In addition, there are signs of the US economy slowing that will enable the Fed to be less enthusiastic than market relaxations,” he said. ” They said.
He said FPI sell-off, the main reason for market weakness in India, is showing signs of exhaustion.
Still, strategists are divided on whether the sell-off has eased, with Morgan Stanley and Bank of America saying more losses could come in the near future, while BlackRock pushed developed market stocks to neutral this week. To downsize.
Moody’s has cut its 2022 growth forecast for G20 economies to 3.1% in 2022, down from 5.9% growth in 2021. This forecast is half a percentage point lower than the 3.6% growth projected in our March outlook.
“Slow economic activity in China is lasting longer than we anticipated in March amid strict enforcement of the country’s zero COVID policy. As incoming figures are broadly in line with our March expectations, we have adjusted our growth forecasts for a handful of G20 economies, including the US, Europe, China, Japan and India, downwards,” Moody’s said. he said.
India will announce the fourth quarter GDP data next week. Morgan Stanley said, “We expect GDP growth to moderate 4.1% Y in the first quarter, up from 5.4% Y in 4Q21 due to the impact of the Omicron wave in the first half of the quarter.” The reason was driven by a softer trend in capex and private consumption.” Said in a note.
,with agency input)