Stock Market

World stocks anticipate their first weekly gain in eight weeks, while the dollar hits a one-month low.

London/Beijing : – Global stocks were set to have their first weekly gain in eight weeks on Friday, thanks to a more optimistic outlook for earnings. Meanwhile, the dollar fell to its lowest level in a month after the Federal Reserve’s minutes suggested that the central bank might slow the pace of rate hikes later this year.

Overnight, optimistic U.S. earnings forecasts from department store operator Macy’s Inc (NYSE:M) and discount chains Dollar General Corp (NYSE:DG) and Dollar Tree (NASDAQ: DLTR) pushed stocks higher.

The minutes from the Fed’s May meeting, which were released on Wednesday, confirmed two more 50-basis-point rate hikes in June and July. Policymakers also hinted that they might take a break later in the year.

Giles Coghlan, the chief currency analyst at HYCM, said that the FOMC (Federal Open Market Committee) minutes had a big effect on the market.

“Investors were relieved that there was no indication of 75 basis points.”

Coghlan also said that the April core PCE price index for the United States, which is due out later on Friday, would be closely watched by the markets for more signs of whether inflation was getting faster.

The MSCI world equity index rose 0.38 percent.It was on track for a 3.2% weekly increase and an almost 6% rebound from 18-month lows set two weeks ago.

The Dow Jones Industrial Average gained 1.61 percent, the S&P 500 gained 1.99 percent, and the Nasdaq Composite gained 2.68 percent on Thursday, but S&P futures were unchanged.

European stocks hit a 10-day high and gained 0.18 percent.The FTSE fell 0.23 percent from the day before’s three-week highs.

Alibaba (NYSE: BABA) and Baidu (NASDAQ: BIDU) both reported higher-than-expected first-quarter revenue growth, lifting Hong Kong stocks by 2.7%.BIDU). In addition to hopes for a stabilization of Sino-U.S. relations and increased Chinese government stimulus, Asian stocks advanced.

U.S. Secretary of State Antony Blinken said Thursday that the U.S. would not prevent China from expanding its economy, but that it should adhere to international rules. Some investors interpreted this as a positive development for bilateral ties.

Japan’s Nikkei increased by 0.7%, China’s mainland blue-chips rose by 0.2%, and Australia’s resources-heavy index increased by 1.1%.

The sentiment shift drove the dollar to a one-month low against an index of currencies, falling 3.2% from 20-year highs reached earlier this month. The euro rose 0.11 percent to its highest level in a month.

Oil prices stayed close to a two-month high, and Brent crude is on track for its biggest weekly increase in 1-1/2 months. This is because the EU might ban Russian oil and the summer driving season is coming up in the US.

The price of US crude rose 0.08 percent to $114.20 per barrel.The price of Brent crude oil rose 0.28 percent to $117.73 per barrel.[O/R]

The 10-year Treasury benchmark note yield fell to 2.7468 percent.It reached a three-year high of 3.20 percent earlier this month due to concerns that the Fed’s rapid rate hikes could hinder long-term growth.

The two-year yield fell to 2.4678 percent from 2.4888 percent at the previous close, as traders anticipate higher Fed funds rates.

“Overall, a marked decompression of stress,” ING analysts wrote in a note.

German 10-year bond yields fell to 0.982 percent.

Gold’s spot price increased 0.43 percent to $1857.79 per ounce. [GOL/]

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button