Global stocks push higher – Mettis Global News

May 27, 2022: Global stocks rose on Friday as investors hoped rising global interest rates could curb runaway inflation.

The latest data from the United States showed that inflation was slowing, helping to boost sentiment.

The PCE price index slowed sharply in April, rising just 0.2% after several months of accelerating to more than double that pace and 0.9% in March.

Over the past 12 months, the key measure of inflation has slowed to 6.3% from 6.6% the previous month, the data showed.

Excluding volatile food and energy products, the increase in the “core” PCE price index was more modest at 4.9%.

The PCE is the US Federal Reserve’s preferred price indicator, and the central bank has launched a counter-offensive against inflation with a series of aggressive interest rate hikes to cool the economy.

These have battered stock markets in recent months as investors feared sharp rises in interest rates could push the global economy into a recession.

“The main finding of the report…is that there has been a year-on-year rate moderation for price indices, which will support the peak inflation narrative,” the report said. market analyst Patrick J. O’Hare at Briefing.com.

The report also showed personal income in the United States rose 0.4% in April from March and consumers continued to increase spending.

“Encouragingly, the latest US personal spending data showed that US consumers were still willing to spend money with a 0.9% rise, which was slightly above market expectations” , said Michael Hewson of CMC Markets.

– ‘Provisional green shoots’ –

Stock markets rebounded this week after minutes from the Federal Reserve’s latest meeting indicated it could take a break from raising interest rates if inflation showed signs of slowing later in the year. the year.

“After a torrid few months, there are some tentative signs of green shoots as investors become more comfortable with central banks’ position in fighting inflation,” said Richard Hunter, head of markets at Interactive. investor.

Back in Asia, investors were in a buying mood as Hong Kong jumped more than 2%, with market heavyweight Alibaba piling up more than 11% and search engine Baidu rising 15%.

Both companies posted better-than-expected sales growth in the January-March quarter, allaying fears about the impact of Covid and inflation on their results.

Hong Kong’s tech index jumped nearly 3%, with other giants also enjoying buying interest with JD.com and Meituan surging.

The reports were much-needed good news from the world’s second-largest economy, which is battered by lockdowns in major cities as leaders refuse to back down from their zero-Covid strategy.

– Key figures around 3:30 p.m. GMT –

New York – Dow: UP 1.0% to 32,946.04 points

EURO STOXX 50: UP 1.8% to 3,808.60

London – FTSE 100: UP 0.3% to 7,585.46 (closing)

Frankfurt – DAX: UP 1.6% to 14,462.19 (closing)

Paris – CAC 40: INCREASE of 1.6% to 6,515.75 (closing)

Tokyo – Nikkei 225: UP 0.7% to 26,7781.68 (closing)

Hong Kong – Hang Seng Index: UP 2.9% to 20,697.36 (closing)

Shanghai – Composite: UP 0.2% to 3,130.24 (closing)

Euro/dollar: DOWN to $1.0711 from $1.0725 on Thursday

Pound/dollar: UP to $1.2614 from $1.2600

Euro/pound: DOWN to 84.92 pence vs. 85.12 pence

Dollar/yen: FALL to 127.10 yen against 127.12 yen

North Sea Brent Crude: UP 0.6% to $118.07 a barrel

West Texas Intermediate: UP 0.2% to $114.07

AFP/APP

Published on: 2022-05-27T23:01:52+05:00

33021

Comments are closed.