[ad_1]
European stocks rose Wednesday, after Hong Kong’s technical divisions had their best day since October, when traders responded to comments from US Federal Reserve chairman Jay Powell that the central bank would take action to curb rising inflation.
The Stoxx 600 regional index gained 0.4 percent, London’s FTSE 100 added 0.5 percent and futures markets encouraged the US S&P 500 index to surpass 0.1% of New York’s initial growth. S&P closed 0.9 percent on Tuesday, while tech-heavy Nasdaq Composite had added 1.4 percent.
Hong Kong’s Hang Seng share index rose 2.7 percent, bolstered by professional stocks whose huge numbers have made them even more concerned about rising bond yields in early January. The Hang Seng Tech Index has increased by about 5 percent, its highest daily increase for the past three months.
The Nikkei 225 of Tokyo earned 1.9 percent.
The price hike that was published later Wednesday is expected to show U.S. consumer prices rose 7 percent in December from the same period last year, the fastest rise since 1982, which has been boosted by spending on incentives and barriers to the epidemic.
Testifying before a Senate banking committee Tuesday, Powell said the central bank would take steps to prevent this from “stabilizing”, in response. disruption the recent rise in bond yields which has made trading more difficult for stocks.
Expectations of rising inflation have caused fixed interest rates such as the US Treasury to fall, raise their yields and download which investors will pay per dollar for future profits of the company.
“We hope that real estate sales can be achieved by now,” Barclays experts led by Emmanuel Cau wrote a letter to clients.
“We think this will help bring equities back.”
The 10-year benchmark yield on the US Treasury note rose above 1.8 percent on Monday from about 1.53 percent earlier in the year, triggering significant changes in stock markets and pushing Wall Street’s Nasdaq Composite share index. briefly in the repair. By Wednesday morning in London, 10-year yields had dropped to 1.748%.
Experts also expect the Fed, which since March 2020 has set interest rates close to zero and has bought more bonds to reduce lending rates, to get rid of these emergencies in the near future.
“The Fed’s statement appears to confirm the market’s expectation that inflation will begin as early as March,” said TD Securities experts.
But some investors say the US and European equity markets can withstand higher interest rates as long as economic power increases corporate earnings and inflation.
“If yields rise and profits fall, money will suffer this year,” said Luca Paolini, chief technical officer at Pictet Asset Management. “Also, the fourth round of funding could also provide support for the next round.”
The dollar index, which measures US currency against six others, was volatile. Brent crude, an oil brand, was flat at $ 83.77 a barrel.
[ad_2]
Source link
