A weaker-than-expected reading of economic data in China that sparked fears of a recession appeared to not upset equity markets or the dollar, with Wall Street's main indexes maintaining gains.
It is understood that the People's Bank of China is expected to reduce interest rates after the Great Wall country's economy recorded readings of industrial contraction and retail sales that were far behind analysts' projections.
According to Tom Plumb from Plumb Balanced Fund, the Chinese market continues to move slowly due to previous Covid-19 restrictions causing economic activity to falter.
Therefore, Plumb feels that the People's Bank of China needs to make the right decision with the stimulus that will be implemented or move more accommodatively.
Based on these factors, the market is seen to recover the losses experienced at the beginning of the session with the MSCI global stock index rising 0.23% while the MSCI gauge of Asia Pacific stocks outside Japan closed 0.34% lower.
The same situation also happened on Wall Street with the Dow Jones Industrial rising 0.42% at 33,903.57, the S&P 500 reaching 0.37% at 4,296.09 and the Nasdaq Composite adding 0.59% at 13,123.89.
It can be concluded that the United States (US) equity reversed the loss, continued to increase for 4 weeks in a row and there is a possibility of easing interest rate hikes by the Federal Reserve (Fed) after inflation has contracted.
Additionally, investors are likely to be wary of market movements ahead of the FOMC meeting minutes report which will be in focus early Thursday morning after attention shifts from the release of US retail sales data.
Currency trends showed the dollar strengthening with the greenback index up 0.785% while the Euro was down 0.97% at $1.0158.
Meanwhile, the 10-year US Treasury yield was down 2.795% from last week's close of 2.849% and the 2-year note yield was down 3.1988% from 3.257%.
For commodities, oil prices fell 3% with Brent futures falling 3.1% to $95.10 while WTI was down 2.9% at $89.41.
Gold fell 1% and spot gold was down 1.3% at $1,778.53 an ounce while US gold futures were down 1% at $1,781.40 an ounce.
