March 10, 2023
United States:
Stocks Will Be Stuck on Fed Until a Recession Becomes Evident, BofA Says
US stocks hanging on Federal Reserve policy signals are boxed in a “neurotic” trading range that will only break once economic data unambiguously point to a recession, Bank of America Corp. strategists say.
The rate hikes of the past year were not a prelude to a steady Goldilocks economy that’s running neither too hot nor too cold, but instead to a “hard landing and credit events,” strategists led by Michael Hartnett wrote in a note on fund flows pointing to another risk-off week in markets.
Europe:
Europe Energy Prices Spike Amid French Nuclear Woes and Strikes
European energy prices jumped amid concerns about France’s nuclear fleet and disruptions due to widespread strikes, along with a late-winter cold blast in other parts of the region.
French year-ahead power surged as much as 12%, the most in more than six months. Benchmark gas futures added as much as 11%, rebounding from a recent slump.
Asia:
Chinese Stock Bulls Dealt a Blow as Congress Underwhelms
For all the hype in the run-up to the National People’s Congress, China stocks bulls were left in the lurch as a terrible week for global markets compounded a selloff spurred by a lack of major policy incentives.
It all began on Monday as a consensus-lagging economic growth target of around 5% announced the previous day dashed expectations for more stimulus. While the key policy meeting brought some good news for state-owned enterprises and software developers, it fell short on big-bang incentives to boost consumption and support the key property sector.
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