Global stocks near 4-week highs, oil rises on hopes of ‘soft end’ |
New York, 9 January (Reuters) – World stocks rose to their highest level since mid-December on Monday after China reopened its borders, while benchmark Treasury yields fell as investors cut expectations for another Federal Reserve rate hike.
Europe’s STOXX 600 index (.STOXX) and emerging market shares (.MSCIEF) were broad on global equity markets, rising 2.4% on the day. MSCI’s broadest index of Asia-Pacific shares outside Japan ( .MIAPJ0000PUS ) rose to its highest level in more than six months after China reopened its borders, bolstering the outlook for the global economy.
Wall Street’s benchmark indexes are expected to address Fed Chairman Jerome Powell on Tuesday and on Thursday inflation The data gave up wide previous gains to end mixed.
of Mizuho Securities USA economist Alex Pelle, “Claims and labour What happens to the market will help to determine whether the upcoming “fall” is soft or hard,” he said.
A soft landing is the ideal Fed policy goal after raising interest rates, in a situation where inflation slows but there are not enough job losses to trigger a recession.
Global stocks on Friday USAA jump in the workforce and labour rose after job data eased wage growth. this is USAcoupled with data pointing to a contraction in the services sector, was interpreted by investors as an indication that the Fed may be less hawkish.
On Wall Street, the Dow Jones Industrial Average (.DJI) fell 112.96 points, or 0.34%, to 33,517.65, while the S&P 500 (.SPX) lost 2.99 points, or 0.08%, to 3,892.09. to paragraph and Nasda added IXIC. Up by 66.36 points or 0.63% 10 It was 635.65.
MSCI’s Size of Worldwide Stocks (.MIWD00000PUS) of the day gained 0.71% after rising to 1.5% earlier.
Money markets saw a 25% chance that US interest rates would rise in February, down from about 50% a month earlier. Investors will look to Thursday’s CPI data for further clues on the Fed’s next move.
The U.S. dollar index fell 0.7% to near a seven-month low, after falling 1.2% on Friday.
In bond markets, Europe government bond yields reversed after sharp declines in previous weeks. Germany’s indicator 10 annual government bond interest increased by 4 points to 2.252%.
10 the annual Treasury note yield fell 4.1 basis points to 3.530%. Bond yields move in the opposite direction of prices.
“Investors are operating under the assumption that the only possible outcome after the Fed stops action will be a cut — and if futures prices are to be believed, the market will see the first cuts before the end of the year,” said Ian Lyngen. Rate strategy at US BMO Capital Markets.
US crude recently gained 1.41% to 74.81 dollars/barrel, and Brent increased by 1.48% daily to $79.73.
Reporting by David Randall; Edited by Susan Fenton, Will Dunham, and Chris Reese
Our standards: Thomson Reuters Trust Principles.
2023-01-10 04:17:22
Source – reuters
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