Global Market Movements: Rate Cuts and PMIs Shape Economic Landscape

Stella Qiu analyzes the potential for rate cuts by European and global central banks as services PMIs indicate economic trends. Investors predict rate cuts by both the European Central Bank and New Zealand's central bank. Meanwhile, mixed performances in Asian markets reflect weakening yen value and varied stock movements.

European and global markets are anticipated to feel the impact of forthcoming economic indicators, as services PMIs in Europe on Thursday may point towards a slowdown in activity and pave the way for anticipated rate cuts.

Investors are factoring in a 25 basis point cut by the European Central Bank in the next two meetings, with player's sentiments firming following comments from ECB's Isabel Schnabel on inflation control. While UK services show growth, Europe's composite PMIs continue to display contraction.

The scene across Asian markets remained mixed, with Singapore showing positive manufacturing PMI numbers, while Hong Kong's tech shares experienced a sharp decline. In Japan, the yen weakened after reassurance from Prime Minister Shigeru Ishiba and BOJ's Asahi Noguchi on maintaining loose monetary policies.

(With inputs from agencies.)