The past week marked a significant milestone in global financial markets, as major indices like DOW, S&P 500, DAX, CAC, and even Nikkei all reached new record highs, buoyed by the widespread euphoria surrounding artificial intelligence related sectors. This wave of optimism to eclipsed the recalibrated expectations that some major central banks, like Fed, would delay anticipated interest rate cuts. Additionally, China's historic rate cut injected further momentum into the market, leading to a sharp rally in Chinese stocks and bolstering confidence across the region. In the currency realm, Yen emerged as the week's weakest performer, alongside Swiss Franc and Dollar. These safe-haven currencies found themselves out of favor as traders shifted their focus towards riskier assets amid the prevailing positive sentiment. Canadian Dollar also faced a downturn, reacting negatively to unexpectedly weak CPI data. Conversely, New Zealand and Australian Dollars stood out as the week's strongest currencies, benefiting from the risk-on market environment and the positive ripple effects of China's monetary policy actions. Sterling followed closely, capitalizing on the general market optimism too. Euro, however, displayed a mixed performance, caught between divergent views within ECB Governing Council on the timing of monetary policy easing. |
