gtag('config', 'UA-12595121-1'); Global Stocks Rise Amid Positive Tech Sector Sentiment and Anticipation of U.S. Inflation Report – The Zimbabwe Mail

Global Stocks Rise Amid Positive Tech Sector Sentiment and Anticipation of U.S. Inflation Report

A man wearing a protective mask walks in front of an electronic stock board showing Japan's Nikkei 225 index at a securities firm Wednesday, Oct. 20, 2021, in Tokyo. Asian stock markets were mixed Wednesday after Wall Street rose for a fifth day on strong corporate earnings. Shanghai and Seoul, South Korea, fell while Tokyo and Hong Kong advanced. (AP Photo/Eugene Hoshiko)
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Sydney, — Global stocks experienced gains on Wednesday, buoyed by positive sentiment in the technology sector. Meanwhile, the dollar remained strong ahead of a crucial U.S. inflation report and a Federal Reserve policy decision that could shape the near-term outlook for interest rates.

European markets rebounded, recovering some of the losses earlier this week caused by concerns over the political situation in France. President Emmanuel Macron called a snap vote over the weekend after his party suffered a defeat in the European Union elections to the far-right.

Overnight, Wall Street saw significant movement as Apple (AAPL.O) surged 7% to a record high following the unveiling of new AI features designed to boost demand for iPhones. This development helped the Nasdaq Composite (.IXIC) rise 0.9% and the S&P 500 (.SPX) gain 0.3%, both reaching record closing highs.

Market attention is now focused on the upcoming U.S. consumer price index (CPI) report. The CPI is forecast to rise by a modest 0.1% in May from the previous month, with the core CPI expected to increase by 0.3%.

“The countdown is on, with the market going into full risk management mode,” said Chris Weston, head of research at Pepperstone. “I like to use U.S. core CPI month-on-month as my simple playbook guide. Any number that rounds to 0.2% could offer relief in risk markets and bring out USD sellers, while a number that rounds to 0.4% could see U.S. two-year yields rise and with it, the USD comes in hot.”

The MSCI All-World index (.MIWD00000PUS) rose 0.14% on the day, while in Europe, the STOXX 600 (.STOXX) gained 0.6%, marking its first rise in four days. U.S. stock futures were up 0.1%, indicating a modestly stronger start on Wall Street later.

In Asian markets, Chinese blue chips (.CSI300) ended the day mostly steady, with soft price data failing to lift sentiment significantly. Data released on Wednesday showed that China’s consumer prices fell 0.1% in May from the previous month, missing forecasts, though they rose 0.3% year-on-year.

Dollar Stands Tall

In the currency markets, the dollar index maintained its post-payroll gains from Friday, standing firm at 105.26 against its major peers. The euro edged up 0.1% to $1.0752 but had fallen for the previous three days due to nerves over the potential political ramifications of the French election. French stocks and bonds have been volatile this week, with political uncertainty prompting three ratings agencies to warn that the snap election poses a risk to the country’s credit standing.

The euro is also near its weakest level in almost two years against the pound. Sterling rose 0.14% against the dollar to $1.2757, despite data showing that the UK economy did not grow in April after a strong start to 2024. “The market had low expectations for the UK economy in April, and it duly delivered,” said Nicholas Hyett, investment manager at Wealth Club.

The Federal Reserve is not expected to change interest rates at its upcoming policy meeting. Instead, attention will be on whether it maintains three rate cuts in its “dot plot” projections for this year. Futures imply 39 basis points of Fed easing for the year.

Treasuries, which rallied overnight on the robust result of a 10-year Treasury auction, steadied with the 10-year yield holding at 4.402%, after falling 7 basis points in the previous session.

Oil prices extended gains for a third consecutive session. Brent futures rose 0.7% to $82.53 a barrel, while U.S. crude futures gained 0.9% to $78.62 a barrel. Gold prices edged 0.1% lower to $2,314 per ounce.

Source: Reuters