World stocks hover near five-month highs, caution kicks in |
LONDON, 25 January (Reuters) – World stocks settled near five-month highs on Wednesday, as signs that central banks may need to raise interest rates for a longer period dampened a recent wave of optimism among major central banks that aggressive monetary tightening is nearly complete. .
The Australian dollar rose more than 0.7% to a five-month high after data showing inflation rose to a 33-year high of 7.8% last quarter bolstered the Reserve Bank of Australia’s (RBA) case for another rate hike next month. .
Canada’s central bank is expected to raise interest rates again later on Wednesday, with recent strong data supporting expectations for another move.
Europe stocks traded weakly, with the broader Euro STOXX 600 (.STOXX) down 0.3%. USA stock futures pointed to a soft opening for Wall Street.
Stocks globally, peak inflation and USAIt has made strong gains this year after a 2022 setback on expectations that interest rate hikes will slow in . China’s dismantling of COVID controls and the reopening of its borders further boosted investor sentiment.
MSCI’s world equity index (.MIWD00000PUS), up more than 6% this month, was broadly flat near five-month highs on Wednesday.
“In our view, the movement in risk assets is overdone,” said Guy Miller, chief market strategist at Zurich Insurance Group.
“Broadly speaking, the problem we have is the worsening economic conditions and the data we’re looking at.”
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) hit a seven-month high. Trading volumes were subdued as markets in China and Taiwan were still closed for the Lunar New Year holidays.
Shares of Microsoft ( MSFT.O ) gave up most of their 4% gains in after-hours trading. The tech titan’s better-than-expected results showed some strength in the face of a weak economy, but weak revenue growth reflects tougher times for the sector. news gave.
Microsoft said Wednesday it was investigating a network problem affecting multiple services.
AUSTRALIAN DOLLAR GROWTH
Australian dollar last in currency markets inflation increased to 0.7123 dollars after the data. The Australian currency has gained almost 2% this week and is poised for its biggest weekly jump in two months.
Investors have sharply discounted the prospect of the RBA raising its cash rate by a quarter point to 3.35% at its February 7 meeting. Earlier, some analysts thought there was a chance the RBA could end its tightening campaign.
“The RBA raises the cash rate by 25 basis points in one meeting and we don’t believe that will change,” ING analysts said in a note.
Euro 1.0887 dollars has been flat around and below the peaks of the last nine months.
January data showing an improvement in German business sentiment unit does not seem to be enough reason to raise the price of the currency just yet.
Germany’s Ifo institute said its business climate index rose to 90.2 from 88.6 in December, according to a Reuters poll of analysts.
New Zealand dollar, New Zealand in the fourth quarter of the year inflation It fell short of the central bank’s forecast of 7.5% after reporting 7.2%.
Oil prices Brent crude futures rose 0.4% to 86.46 a barrel after falling 2.3% in the previous session. dollars has been West Texas Intermediate (WTI) USA Crude oil rose 0.3% to $80.36 after falling 1.8% on Tuesday.
Gold prices It fell 0.5% to $1,928 an ounce, down from a nine-month peak hit in the previous session.
Reporting by Dhara Ranasinghe; Added by Anshuman Daga in Singapore report; Edited by Mark Potter
Our standards: Thomson Reuters Trust Principles.
2023-01-25 14:36:06
Source – reuters
Translation“24 HOURS”