Risk appetite supports european stocks

Global markets remain stable today

By Raed Alkhedr | @raedalkhedr | 28 March 2023

  • The consumer price index in Japan increased by 2.7%

  • The US dollar experienced slight decline during today's trading

  • European stocks rose for the second consecutive day

Inflation slowed down in Japan during March

The growth rate of the consumer price index in Japan slowed down in the current month, rising by 2.7%, while expectations pointed to 3.5%. The decrease in the inflation rate was not surprising, as the national consumer price index also sharply declined last week due to government support for service bills that came into effect in February.

This comes at a time when caution dominates the Bank of Japan regarding the direction of monetary policy tightening, like other central banks. All that the bank has resorted to in recent months is related to controlling the yield curve to prevent the continued collapse of the value of the yen against most major currencies, especially the US dollar.

The Japanese yen was somewhat stable against most major currencies, as today's inflation data fell within market expectations. The USD/JPY pair remained stable near the 130.80 levels.

The US dollar awaits consumer confidence data

The US dollar experienced slight decline during today's trading, with the dollar index falling by 0.27% to reach 102.80 levels. This comes at a time when the markets await consumer confidence data within hours. Most expectations indicate a decrease in consumer confidence from 102.9 to 101.10 points.

The divergent performance of European stocks

European stocks rose for the second consecutive session on Tuesday, supported by commodity and banking stocks, after the Silicon Valley Bank stock purchase deal raised hopes of containing the banking crisis. The Euro Stoxx index jumped by 0.4%, continuing its recovery after last week's market collapse due to fears of the banking crisis contagion.

On the other hand, US futures struggled to stabilize during today's trading, as investors wait to evaluate developments in the banking sector.

The Euro Stoxx index is approaching gains of up to 5% amid signals of economic flexibility and hopes that central banks are about to end the strong monetary tightening policies that they resorted to during the past period