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Global equities climb as investors assess economic outlook 

 April 29, 2022

Global stocks pushed up on Tuesday, while the dollar fell as traders returned to riskier assets following a series of worst weekly losses for stocks since 2008.

The Wall Street S&P 500 rose 1.4 percent by late morning in New York, even as shares of Walmart – the world’s largest brick retailer – fell 11 percent after inflationary pressures forced it to Cut profit forecasts for the current quarter. The high-tech Nasdaq Composite added 2% after closing down 1.2% on Monday. In Europe, the Stoxx 600 ended the session up 1.2 percent.

These moves came in the wake of a 3.3 percent rise for Hong Kong’s Hong Kong Hong Kong. The region’s technology-focused sub-index rose 5.8% as heads of major Chinese technology companies met with regulators to discuss the country’s digital economy.

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Analysts at JPMorgan suggested that stock markets would price too much for a recession risk, saying the stock “is about to recover if a recession does not materialize, given the already significant multiple reductions, reduced positioning and low sentiment”. The US Federal Reserve “doubts” that the equity flow in April – the highest since March 2020 – was the beginning of a long phase of exits.

The FTSE All World Index, which ended six consecutive weeks of declines last Friday, rose 1.6% on Tuesday.

Meanwhile, the dollar – a measure of the U.S. currency against six others – fell 0.8 percent on Tuesday, after falling to a multi-year high last month. In addition to the dollar’s weakness, sterling rose 1.3% to just under $ 1.25, putting the pound on its biggest daily rise since October 2020. The euro has risen at its highest rate in more than two months, up 1.1% to $ 1.05.

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The common currency added to its profits after the head of the Dutch central bank, Class Note proposed That the European Central Bank should raise interest rates by 0.25 percentage points in July, but also remain open to a larger rise if inflation worsens. Markets are now pricing a full percentage point of interest rate hikes by the end of 2022, compared to 0.93 percentage points on Monday.

With stock markets rising on Tuesday, the eurozone debt has been hit ma A renewed wave of sales, Sending higher returns. The 10-year yield on the German bond, which is considered a means of credit costs across the bloc, rose by 0.11 percentage points to 1.05%. The corresponding Italian return added 0.12 percentage points.

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U.S. debt also came under pressure, with the 10-year yield on the Treasury bill adding 0.08 percentage points to 2.96 percent and the two-year yield-sensitive yield to the policy rising by 0.09 percentage points to 2.66 percent.

Federal Reserve Raise the interest rate At 0.5 percentage points this month, with similar increases expected in the next three central bank meetings, as it acts aggressively to curb high inflation stubbornly.

“We still think the market is too aggressive about Fed expectations,” Steve Englander told Standard Charter. The ECB is just starting to increase its language on normalization and that’s a big part of the dollar weakness we expect in [the second half]. “

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Another report by Ian Johnston

Global equities climb as investors assess economic outlook Source link Global equities climb as investors assess economic outlook

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