Global stocks eye first weekly gain in eight weeks, dollar hits month low By Reuters

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© Reuters. A man wearing a protective face mask, amid the coronavirus (COVID-19) epidemic, passes a screen showing the Shanghai Composite Index, the Nikkei Index and the Dow Jones Industrial Average outside a brokerage in Tokyo, Japan, February 14, 2022. REUTERS/KIM

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Written by Caroline Cohn and Stella Keough

LONDON/BEIJING (Reuters) – Global stocks were headed for their first weekly gain in eight weeks on Friday amid a more upbeat earnings outlook, while the dollar hit a one-month low after Federal Reserve meeting minutes suggested it could curb rapid price increases. Benefit. later this year.

Upbeat US overnight earnings forecast from department store operator Macy’s Inc (NYSE:) and discount chains Dollar General Corporation (NYSE:) and Dollar Tree (NASDAQ:) stocks boosted.

The Federal Reserve’s May meeting minutes released on Wednesday confirmed two additional 50 basis points increases in both June and July, but policy makers also suggested the possibility of a pause later in the year.

“It all flows from the FOMC meeting minutes,” said Giles Coghlan, chief currency strategist at HYCM.

“Investors were relieved that there was no 75 basis point tip.”

Coghlan added that markets will focus on the core April PCE price index for the US due later on Friday, looking for more indications on whether inflation is on the rise.

The MSCI global stock index rose 0.38%. It was heading for a 3.2% rise for the week and a recovery of nearly 6% from the 18-month lows I set two weeks ago.

It was flat after rising 1.61%, 1.99% and jumping 2.68% on Thursday.

European shares hit a 10-day high, up 0.18%. It is down 0.23% from its three-week high the day before.

Hong Kong shares rose 2.7% after better-than-expected first-quarter revenue growth from Ali Baba (NYSE: 🙂 and Baidu (NASDAQ :)). Asian stocks also benefited from hopes of stabilizing Sino-US relations and more Chinese government stimulus.

On Thursday, Secretary of State Anthony Blinken said in comments interpreted by some investors as positive for bilateral relations, that the United States would not prevent China from developing its economy, but wanted it to abide by international rules.

It advanced 0.7%, mainland China’s blue-chip stocks rose 0.2%,Australia’s heavy resources index rose 1.1%.

The swing in sentiment pushed the dollar to one-month lows against the currency index, down 3.2% from 20-year highs hit earlier this month. The euro reached a one-month high and gained 0.11%.

Oil prices remained near a two-month high, with it on track for its biggest weekly jump in a month and a half, buoyed by the prospect of an EU framework on Russian oil and the upcoming summer driving season in the United States.

It rose 0.08% to $114.20 a barrel. Brent crude rose 0.28 percent to $117.73 a barrel. [O/R]

The return on the benchmark index fell to 2.7468%. It reached a three-year high of 3.2030% earlier this month on concerns that rapid increases from the Federal Reserve could undermine long-term growth.

The two-year yield, which rose with traders anticipating a hike in the fed funds rate, eased to 2.4678% from a close of 2.4888%.

“All in all, a clear relief from pressure,” analysts at ING said in a note.

German 10-year bond yields fell to 0.982%.

It rose 0.43% to $1,857.79 an ounce. [GOL/]

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