Overseas Headlines – March 10, 2023

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 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.



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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