A rally of global stocks came to a pause on Tuesday as investors shifted their sights to current economic conditions and the likelihood of incoming central bank interest rate hikes.
Europe’s Stoxx 600 Index remained little changed, while in Asia, Japan’s Topix and Hong Kong’s Hang Seng fluctuated between gains and losses throughout the day. The MSCI Emerging Markets Index inched 0.3% higher.
Investors were unagreeable leading up to the Australian central bank’s decision to keep interest rates unchanged, lacking consensus on whether an interest rate hike would be implemented or not. The Australian dollar fluctuated following the announcement.
“Whilst a pause may come as a relief to some, I doubt we’re at the peak rate, although we may not be far off,” Matt Simpson, a senior market analyst at City Index in Sydney warned.
New York Fed President John Williams and Dallas Fed President Lorie Logan are both slated to speak this week, while the European Central Bank’s Christine Lagarde will speak in France on Friday.