Crisis or correction for asset markets
WEEKLY MARKET COMMENTARY |
Global investors will observe a heavy slate of first-tier economic data around the world amidst the aftermath of the G20 meeting in Shanghai and the Super Tuesday primary elections in the United States. In particular, with policy risk rising around the world, including the U.S., any hint of coordinated fiscal and or monetary policy support that may be on the way would put a floor under sagging investor confidence and likely turbo-charge global equity markets during the week. Now, with policymakers likely viewing recent developments in asset markets as a correction rather than a crisis, this is a low probability event. In China, the February manufacturing Purchasing Manager’s Index will be released, which will help set the tone at the beginning of the trading week. In the Eurozone, fresh data on inflation, the unemployment rate and retail sales will be released. Finally in the U.S., an update on pending home sales, manufacturing, vehicle sales, international trade and employment will influence risk appetite across global markets.