Global equities displayed a mixed performance on Monday ahead of China’s annual political assembly, with Japan’s main index breaking the 40,000 mark for the first time.Germany’s DAX inched up 0.1% to 17,752.66. The CAC 40 in Paris dipped 0.1% to 7,929.27, while London’s FTSE 100 fell 0.2% to 7,666.31.Futures for the S&P 500 were down 0.1%, and those for the Dow Jones Industrial Average slipped 0.2%.
In the Asian trading session, Japan’s Nikkei 225 stock index climbed 0.5% to end the day at 40,109.23, supported by the upward momentum witnessed on Wall Street in the preceding week, leading to U.S. stocks attaining unprecedented highs.
Shares in Japan have followed the upward trend seen in other markets, driven by expectations of increased demand for technology related to artificial intelligence. This surge has been further supported by the Bank of Japan’s ongoing efforts to maintain loose credit policies, injecting funds into the economy to promote growth.
Meanwhile, Hong Kong’s Hang Seng saw a marginal increase of less than 0.1%, closing at 16,595.97, while the Shanghai Composite index rose by 0.4% to reach 3,039.31.The focus this week remains primarily on China’s National People’s Congress, the country’s most significant political event, which begins on Tuesday. 
Australia’s S&P/ASX 200 experienced a marginal decline of less than 0.1%, settling at 7,735.80, while Bangkok’s SET remained largely unchanged.On Friday, the S&P 500 surged by 0.8% to 5,137.08, a day after reaching an all-time high.
The index has been on a remarkable streak, climbing in 16 of the last 18 weeks due to optimism surrounding moderating inflation and the resilience of the U.S. economy. The Dow Jones Industrial Average rose by 0.2% to reach 39,087.38, driven by the leadership of technology stocks.
Furthermore, the Nasdaq composite surged by 1.1% to 16,274.94, surpassing its previous 2021 record.The Federal Reserve recently raised its main interest rate to its highest level since 2001.
Elevated interest rates can exert pressure on the financial system. There has been anticipation that the Fed would lower interest rates multiple times this year to provide relief for banks and the broader economy.However, the Fed has signaled its willingness to do so only if inflation significantly moderates toward its 2% target.
Yet, a series of stronger-than-expected economic reports have led traders to push back their forecasts for when the rate cuts might commence. Presently, the expectation is that the Fed could initiate rate cuts in June, following the abandonment of earlier projections for March.
In bond market activity, the yield on the 10-year Treasury dropped to 4.21% on Monday, down from 4.25% at the close of trading on Thursday. In contrast to other market trends, U.S. benchmark crude oil increased by 30 cents, reaching a value of $80.27 per barrel during electronic trading on the New York Mercantile Exchange.
The U.S. dollar strengthened against the Japanese yen, reaching 150.38 yen from 150.08 yen. Additionally, the euro inched up to $1.0845 from $1.0841.
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