European and US PMI data surprised to the upside Monday with the Chicago Fed National Activity Index for February showing the strongest growth since 1999 before slowing somewhat in March.
"The start of this trading week saw the best macro day against expectations since mid-February," notes Saxo Bank head of equity strategy Peter Garnry, with European bourses opening in the green.
In China, Garnry reports that stocks are soaring on rumours that Beijing may be willing to ease its policy tightening mandate in order to stave off a larger-than-anticipated economic slowdown; the CSI 300 index closed up 2.6% on the speculation.
On the earnings front, Google parent Alphabet reported a 24% rise in topline growth (excluding traffic acquisition costs) with revenues coming in at $24.9 billion versus $24.3bn expected while earnings per share came in at $13.33 versus $9.30 expected.
"Alphabet shares quickly rallied by 5% but closed the after-market session flat," Garnry reports, adding that in Europe Volvo beat expectations in open profit terms while Santander exceeded forecasts in net income.
Today sees Coca-Cola, 3M, Verizon, and Amgen posting earnings.
In commodities, Iran remains the key geopolitical focus for oil traders ahead of US president Donald Trump's decision on sanctions next month and in the wake of Iranian-backed Houthi forces in Yemen launching a missile attack against Saudi Arabia.
Saxo Bank head of commodity strategy Ole Hansen reports that Brent crude surged north of $75/barrel to its highest level since November 2014 on the news.
Meanwhile, Hansen says that gold prices are at risk of slumping lower with the April low of $1,320/oz and a further extension to $1,307/oz in view. Aluminium prices, meanwhile, have slumped lower as the US Treasury extended its deadline for sanctions against Rusal, Russia's largest aluminium producer.
Q4 Outlook 2022: Winter is coming
- Winter is coming to the financial markets as central banks are tightening their grip. How spring will look is still a question.
European energy crisis: it will get worse before it gets betterThe winter in Europe will be tough, but whether the result is political chaos or sustainable, innovative solutions is still undecided.
A difficult and volatile quarter awaitsAs the year draws to an end, commodities continue to be at centre stage of the world with growth pockets political uncertainty.
The bright side: crises drive innovationThe positive spin on crises is that they come with solutions. It is worrisome that deglobalisation may be a response to this crisis.
Green transformation in China: renewable energy and beyondGoing green, China needs to span numerous energy sources to ensure stability, as every source comes with a challenge.
Asia: Intermittent solutions, but a faster renewable adoption curveAsian energy supply is being squeezed. This and the adoption of renewables may change the investment sentiment in the region.
FX: A Fed thaw needed to deliver a sustained USD turn lowerThe US Dollar can keep momentum when the Federal Reserve continues to tighten, leaving the rest to play to their drum.
Autumn can become ugly for equities and bond holders. Comfort for Dollar longsTechnical analysis suggests that equities could face a tough Q4 as could fixed income. US Dollar positions could provide some upside.
The next stock market sector to watch, with stocks going nuclearAs the world scrambles to find affordable, sustainable energy, nuclear is getting attention from politicians and investors alike.
The crypto space is getting cold when the hype disappearsCryptocurrencies face a winter of their own as retail investors and governments are asking tough questions.