Global Stock Markets

A potential U.S. recession and tough comparisons to a stellar 2022 are weighing on the prospects of energy stocks delivering an encore to last year's stunning run, despite valuations that are seen as still comparatively cheap.

All major U.S. stock indexes are showing a clear downward trend after ending Wednesday's all-around decline. Early indications from major stock index futures suggest Wall Street may open lower. As of 7:15 a.m. ET, DJIA futures were down 241.00 points, S&P 500 futures were down 29.50 points, and NASDAQ 100 futures were down 92.75 points.

U.S. stocks were relatively flat in Tuesday's trading. Investors are seemingly reluctant to take major action after the long holiday weekend, which leads to divergent moves. Although the Dow narrowed its losses before the close, showing clear signs of a downward trend, the index could move higher again before falling further.

The earnings report could be the highlight of the week. Wall Street generally believed that Morgan Stanley's Q4 GAAP earnings per share were US$1.29 with a revenue of US$12.6 billion. The market will pay close attention to the revenue data as Morgan Stanley's sales failed to meet market expectations in three of the past four quarters.

Foreign investors have barely begun buying back beaten-down stocks in China, but there are growing signs that the end of the country's tough COVID-zero policy marks the beginning of a long global march back into Chinese equities.

European markets closed the day lower yesterday as caution crept in after what has been a strong start to the year.

Early signs of U.S. stock index futures suggest U.S. stocks could open lower on Tuesday. Federal Reserve Chairman Jerome Powell's speech and financial results may be the highlights of today. Asian session closed lower while European stocks fell.

We all know that the forex and stock markets are related, so it’s of course a good idea for forex traders to keep an eye on what equities are doing. But there are a couple of circumstances that are coinciding this quarter that make this relationship especially pronounced. The stock market, particularly in the United States, could give us some insight into what to expect in the currency markets.

Friday's jobs data in the US, and more specifically, the market reaction to Friday's jobs data helped stock markets to record their best boost since more than a month on Friday.

A look at the day ahead in Asian markets from Jamie McGeever.