Photographer: Kiyoshi Ota / Bloomberg
Photographer: Kiyoshi Ota / Bloomberg
Global stocks traded around record levels on Friday following a Wall Street rally on Federal Reserve Chairman Jerome Powell’s assurance that the central bank can revive the economy without causing painful inflation.
Concerns about price pressures were evident in China, where data showed the the fastest factory inflation since 2018. Sliding Chinese stocks weighed on an Asia-Pacific equity indicator. U.S. equities futures rose, with Nasdaq 100 contracts outdated, after the S&P 500 hit an all-time high amid low U.S. stock market volumes. European equity futures fluctuated.
Powell’s guarantee boosted Treasuries, with a benchmark yield of around a two-week low. 20-year Treasury bills led the broader gains following comments from New York Fed Executive Vice President Lorie Logan, which sparked an increase in central bank purchases at that maturity. The dollar maintained losses, putting its three-week winning streak at risk.
Oil rose to $ 60 a barrel like Saudi Arabia he defended OPEC + ‘s plan to increase production and said the alliance could change course if necessary.
The Fed’s comment reassures investors about the central bank’s commitment to a favorable policy that favors a sustainable rebound from the health crisis. Powell policymakers would react if inflation expectations began to “progress persistently and materially” above tolerable levels. Despite the strength of some indicators, the recovery remains incomplete, as reflected in the unexpectedly high recent US unemployment claims.
“Many investors are concerned about maximum stock markets, but that doesn’t mean it can’t rise, and economic conditions are certainly set for a positive equity environment,” said Xi Qiao, CEO of UBS Global Wealth Management , on Bloomberg TV.
The U.S. outlook has improved a lot, but they are still at risk of possible setbacks in the global economy, as vaccine deployment “has not been nearly as robust in many countries,” said Fed Chair Mary Daly of San Francisco, in an interview with Bloomberg.
More than 704 million shots have been fired worldwide, but uncertainty about the risks associated with the AstraZeneca vaccine has slowed the process in some countries. China is among those facing new hurdles, as its effort to vaccinate 560 million people at the end of June is in a supply deficit.
These are some of the main movements in the markets:
Stocks
- The S&P 500 futures rose 0.2% from five in the morning in London. The S&P 500 closed up 0.4% more.
- Nasdaq 100 futures rose 0.4% after the index gained 1%.
- Japan’s Topix index rose 0.6%.
- The Kospi index in South Korea fell 0.1%.
- Australia’s S & P / ASX 200 index was 0.4% lower.
- Hong Kong’s Hang Seng index lost 0.7%.
- Shanghai’s composite index of China fell 0.7%.
Coins
- The Spot Bloomberg Dollar index has risen less than 0.1%.
- The euro fell 0.1% to $ 1,1907.
- The Japanese yen was trading at 109.29 per dollar.
Good
- The ten-year Treasury yield rose one basis point to 1.63%.
- Australia’s ten-year bond yield remained steady at around 1.74%.
Commodities
- West Texas crude oil rose 0.2% to $ 59.71.
- Gold was 0.1% lower, at about $ 1,753 an ounce.
– With the assistance of Nancy Moran, Elena Popina, Edward Bolingbroke and Kathleen Hays