International exchange-traded funds strengthened on Monday after European markets ended higher, breaking a five-day losing streak.
The pan-European STOXX The 600 index was higher after plunging to a three-week low last week, Reuters reports.
Meanwhile, Asian stocks weakened further, following news of a new round of regulatory crackdowns against Chinese companies.
Global markets have been under pressure after posting gains for months. Traders are now worried about inflation, COVID-19 restrictions in Asian economies, regulatory uncertainty from China and bets that central banks could begin to reverse accommodative pandemic-era stimulus measures.
Nonetheless, European investors were appeased after the European Central Bank last week revised its growth and inflation outlook for the year and beyond last week, indicating a faster-than-expected economic recovery in the area. euro.
“While we’re used to seeing US markets leading the way, there is a feeling we might see more catch-up for Europe, as high vaccination levels keep deaths relatively stable,” Joshua told Reuters Mahony, Senior Market Analyst at IG.
Markets will monitor US consumer price data on Tuesday to gauge the inflation outlook after the surge in producer prices last week fueled doubts about the Federal Reserve’s transient inflation spike American.
“Some central bankers will have you believe that they are happy to hold back the tightening for now, we are seeing very clear signs that this spike in inflation is far from fleeting,” Mahony added.
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