Japan and UK hit hard, but stock markets soar
Japan and the UK are going through tough economic times. Japan had a surprise decline in the last quarter, and the UK saw negative growth for the second consecutive quarter.
(AI Video Summary)
Japan and the UK's tough economic times
Japan and the UK are going through tough economic times. Japan had a surprise decline in the last quarter, and the UK saw negative growth for the second consecutive quarter. However, despite these challenges, people are still putting their money into the stock market. This is shown by the French CAC 40 index reaching a new high, which means people are willing to take risks with their investments. This positive trend is expected to continue in France.
Asian markets
Moving on to Asian markets, the Japanese Nikkei 225 index went up by 1.2%, even though Japan is in a recession. The Australian S&P 200 index and the Japanese Topics index also saw gains. In the US, the stock market had a recovery after losses the day before, with companies like Uber leading the way. Uber's stock has gone up by 78% since it first went public.
Alphabet
Notable companies like Alphabet, the parent company of Google, and Airbus reported good earnings. Alphabet is now the third most valuable company in the US, worth nearly $1.8 trillion. On the other hand, Commerzbank saw its biggest profit in 15 years, and Renault and Stellantis had positive results after facing losses previously.
The FX market
The UK's recession caused the GBP to lose value against the USD and the EUR. However, the AUD managed to hold onto its gains despite the drop in the US dollar. In the US, people are watching out for the release of retail sales figures, which will give insight into the performance of the euro-dollar trade. There is speculation that the Federal Reserve will not be reducing interest rates anytime soon, which could delay any rate cuts until July.
US retail sales
Later in the day, there will be updates on US weekly jobless claims, US retail sales figures, and the earnings report from Coinbase, a cryptocurrency exchange. The price of oil is still decreasing, while the price of gold is remaining stable. Overall, people are paying close attention to the global economy, especially the recessions in Japan and the UK, as well as the performance of different companies across various industries.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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