Global shares are on track for their first monthly loss in six months as investors brace for a week filled with economic data, earnings reports, and the U.S. Federal Reserve’s policy meeting. The MSCI All-World index is up 0.1% on the day, driven by gains in Europe, but is set to close April with a 2.2% loss, its worst monthly performance since October.
In Europe, investors are digesting earnings from major companies like HSBC, Santander, Adidas, Lufthansa, and Apple, which will report its first-quarter earnings soon. The outcome of the Fed’s policy meeting and the U.S. employment report are also key factors influencing market sentiment.
The Japanese yen is in focus after suspected intervention lifted it from 34-year lows, with authorities ready to address foreign exchange matters around the clock. However, the yen remains under pressure, with the dollar gaining ground.
Vasu Menon, managing director of investment strategy at OCBC, noted that intervention alone may not address the interest rate differentials driving the yen’s decline. The outcome of the Fed policy meeting will be crucial in shaping market expectations for U.S. rate cuts this year.
Treasury yields and the dollar have been rising on shifting rate expectations, with the dollar up 0.2% against a basket of currencies. U.S. stocks ended higher, led by Tesla’s gains, while oil prices remained steady. Gold prices, however, saw a decline.
Overall, the market is bracing for a volatile week ahead, with a focus on central bank policies, earnings reports, and economic data shaping investor sentiment.