US stock futures rose on Monday in a likely technical rebound after the major averages suffered heavy losses last week. Meanwhile, investors watched for developments in the Middle East following Iran’s retaliatory strikes on Israel over the weekend that markets fear could prompt a response from the Israel government. However, the Iranian attack caused little damage to Israel and the US said it wants to avoid a wider war in the Middle East. Last week, the Dow and S&P 500 fell 2.37% and 1.56%, respectively, sliding for the second straight week and posting their worst weekly drop this year. The Nasdaq Composite also tumbled 0.45% after losing 1.62% on Friday. Those moves came as hot US inflation data prompted traders to dial back bets on multiple interest rate cuts from the Federal Reserve this year. Investors now look ahead to US retail sales figures and Goldman Sachs’ earnings report on Monday.
Frankfurt's DAX 40 index surged 1% to hit the 18,100 mark on Monday, as tensions in the Middle East eased following Israel's successful defence against a significant air assault by Iran over the weekend, coupled with affirmations from the U.S. regarding its commitment to avoiding wider conflict in the region. Investor focus swiftly turned to the first-quarter earnings season and speeches by several Federal Reserve officials, seeking additional insights into the trajectory of the US central bank's policies. In Europe, ECB policymaker Gediminas Simkus indicated the possibility of interest rate cuts in both June and July, suggesting a greater than 50% chance of more than three rate cuts this year. Noteworthy among individual stocks, Adidas soared 4% to claim the top spot on the index after brokerage Morgan Stanley upgraded the German sportswear maker from "underweight" to "overweight."
India's equities lost 573.1 points or 0.8% to a more than two-week low of 73,720.6 in early deals on Monday, falling for the second session amid losses across all sectors. The BSE Sensex fell further from a record peak touched last week following a negative lead from Wall Street Friday, as investors avoided riskier assets due to escalating tensions in the Middle East. They also continued to take a cautious stance ahead of crucial data in top trading partner China this week, namely Q1 GDP and March activity figures. At home, readings on wholesale prices for March will be due later today, with markets expecting the 4th straight month of rise. Capping the bearish traction was the lowest retail inflation for 10 months last month in the South Asia nation. Tata Consumer Products sank 2.7%, while Tata Motors, BPCL, and ICICI Bank dipped 2.4%, 2.0%, and 1.7%, respectively. On the corporate front, some firms are set to announce their earnings today, including Bhawani Cable and GTPL Hathway.
The Shanghai Composite jumped 1.26% to close at 3,057 while the Shenzhen Component gained 1.53% to 9,370 on Monday, with mainland stocks erasing losses from the previous session as investors cheered China’s new guidelines for the capital market. On Friday, the country’s securities regulator issued draft rules to shore up the supervision of company listings, delistings and computer-driven programme trading amid efforts to improve the stock market and protect investors. Meanwhile, the People's Bank of China kept its one-year medium-term lending facility rate at 2.5% at its April fixing. Investors now look ahead to China’s first quarter GDP numbers and a raft of corporate earnings reports this week for further insights. Consumer and new energy stocks led the charge, with gains from Kweichow Moutai (2.4%) and Contemporary Amperex (4.6%). In corporate news, Naura Technology rallied 7.9% after reporting a 66% profit increase in 2023.
