Stocks buoyant while darker forecasts emerge

Dollar remains firm as IMF forecasts global recession in 2023

LONDON:

Stock markets edged higher, European bond yields dropped and the dollar remained firm in light trading on Monday amid warnings from the International Monetary Fund’s (IMF) managing director that a third of the world will fall into recession in 2023.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.06%, just short of an index of global shares, which climbed 0.16%.

The pan-European Stoxx 600 index climbed 0.6%, retracing little of the nearly 12% it lost in 2022, bludgeoned by central banks’ aggressive monetary policy tightening.

However, traders were reticent to trust early-year starts in stock and bond moves with many markets closed for a holiday and ahead of a host of economic numbers due this week.

Inflation data from Europe, minutes from the December US Federal Reserve meeting and US labour market numbers were some of the highlights that Danske Bank chief analyst Piet Haines Christiansen said would be worth watching.

“I would be cautious over interpreting any moves this morning,” said Christiansen.

Markets in the United States, Britain, Ireland, Singapore, Japan, Hong Kong and Australia were shut.

Published in The Express Tribune, January 3^rd, 2023.

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