Major global stock market indices posted weekly losses as an escalating global trade war sparked risk-off sentiment. While risk appetite may have recovered somewhat following Friday’s rebound, investors will focus on interest rate decisions from the Federal Reserve (Fed), the Bank of Japan (BOJ), the Bank of England (BOE), the Swiss National Bank (SNB), and the People’s Bank of China (PBOC), navigating the market trajectory this week.
The odds are now turning to the more dovish stance of these major central banks. Trump’s tariffs and his efforts to reduce the US deficit increased the risks of a global economic downturn. A more accommodative monetary policy could provide a further opportunity for stock markets to rebound. Typically, a “Fed put” could help Wall Street to recovery from a correction territory.
