This week, investors will focus on the February US personal consumption expenditures price index
Wall Street stocks edged lower at the start of a shortened trading week as the market was cooling after last week’s rally which sent the indexes to record highs. The S&P 500 slipped 0.3% Monday, the Dow Jones gave up 0.4%, and the Nasdaq Composite shed 0.3%. In individual stocks, shares of Intel slipped 1.7% amid the reports that new China guidelines would block the company’s chips in government servers and computers. This week, investors will focus on the February personal consumption expenditures price index that could affect Fed rate cut expectations.
In Asia, equities moved in a tight range on Tuesday, with trading activity abating these days in anticipation of more cues on inflation and the Fed. China’s Shanghai Composite index was nearly unchanged, while gains in some tech stocks pushed Hong Kong’s Hang Seng index 0.88% higher. Japan’s Nikkei 225 erased early modest losses to finish 0.12% higher, hovering around record highs. Australia’s ASX 200 fell 0.41% after coming close to all-time highs earlier in the session. South Korea’s Kospi jumped 072% to an over two-year high on Tuesday.
European stocks saw see little change at the open today amid a more tepid mood as investors prepare for the Easter break. However, month-end and quarter-end flows could induce some volatility bouts later in the week. The pan-European Stoxx 600 fell 0.2% in early deals. US stock index futured look mixed and indecisive in early pre-market deals in anticipation of house price data and durable goods orders due later in the day.
Meanwhile, the US dollar has been pressured since the start of the week, retreating marginally from mid-February highs registered last week around 104.50. The USD index turned defensive since then, however, still stays above the 104.00 handle that represents the immediate support at this stage. Should the upcoming economic data surprise to the upside, the greenback may regain the bullish bias to stage a bounce from the 104.10 area. Otherwise, a decisive break below 104.00 would pave the way towards the 103.50 region.
