The market week began with a quiet mood as stock markets in Asia, except for Japan, were largely down. Futures indicated that Europe and the United States were also expected to open lower. On the foreign exchange market, the yen had strengthened slightly against other major currencies. Masato Region, Japan’s Deputy Minister of Economy responsible for currency affairs, stated that Japanese authorities are prepared to intervene in the currency market if necessary.
Despite an interest rate hike in March, the yen continued to show weakness, remaining at historically low levels against the dollar. The dollar was valued at 159.74 yen. This week, the focus is on inflation figures from Japan, Australia, and the United States, particularly the Fed’s PCE deflator. Additionally, the political scene will be heating up with debates in the US presidential race and British prime ministerial race.
In Europe, trade commissioner Valdis Dombrovskis announced that the EU will begin negotiations with China, specifically regarding import duties for electric cars. The EU has planned tariffs of up to 48 percent on Chinese electric cars, leading China to threaten retaliation. Meanwhile, the cryptocurrency Bitcoin fell to its lowest level in more than a month, dropping below $63,000.
Overall, the market is closely watching inflation figures in major economies, political developments in the US and UK, and trade negotiations between the EU and China. The cryptocurrency market is also experiencing volatility, with Bitcoin prices seeing a significant decline. The week ahead is expected to bring more clarity on these fronts and could influence market movements accordingly.