Positive atmosphere in global markets
Global markets entered the new week in a positive mood after the US employment data announced on Friday.
While global stock markets started the first day of the new week with a general increase, Chinese stocks, which were closed for most of the last week, are catching up and leading this movement.
The increase was due to the below-expected US non-farm employment data announced on Friday, supporting the Fed interest rate cut expectations. On the first trading day of the week, financial markets in Japan and the UK will be closed due to a public holiday.
The US S&P 500 and Nasdaq 100 indices, which completed Friday with increases of over 1 percent, are slightly positive in futures this morning.
Bloomberg Dollar Index, which decreased by nearly 1 percent throughout last week, is at 1,252 with an increase of 0.12 percent this morning.
While China’s markets remained closed from Wednesday to Friday last week for the Labor Day holiday, offshore stocks made strong gains.
Similarly, in foreign exchange markets, the offshore yuan was last traded at 7.2013 with a 0.1 percent decrease against the dollar, after rising more than 1 percent last week due to the weakening dollar.
The People’s Bank of China (PBOC) caught offshore movements by pushing the midpoint of the yuan’s trading range to a three-week high.
The recovery seen in Chinese markets came after the central bank meeting. Central bank officials announced that they will support the economy with prudent and proactive monetary policies.
The overall gains seen in Asian markets were driven by US non-farm employment, which rose more slowly than expected on Friday.
Following the non-farm employment data and Fed Chairman Jerome Powell’s reiteration of the central bank’s loosening stance, expectations that the Fed will cut interest rates later in the year have strengthened again.