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European shares rise after China stimulus pledge

European stocks rose after Chinese authorities pledged to protect the country’s economy from Corona virus locks, but U.S. technology stocks were willing to fall following weak results from Amazon and Apple.

The Stoxx 600 regional stock index rose 0.7%, after rising in Asia, where the Hong Kong Hong Kong index closed up 4%. The London FTSE 100 rose 0.4% and the German Xetra Dax climbed 1.1%.

But futures trading suggests the S&P 500 will open 0.8% lower in New York, heading for a loss of more than 5% a month. Contracts that follow the high-tech Nasdaq 100 are down 1.1%. The broader Nasdaq Composite is on track to drop more than 9% in April, in what will be the worst monthly performance since March 2020.

The moves in European and Asian stock markets came after a statement by China’s Politburo, the Communist Party’s decision – making body, which promised to “strengthen macroeconomic adjustments” and “achieve full-year economic and social development goals.” She also said she would ensure the “stable and healthy” operation of the capital markets.

“A lot of investors [in Europe] “Focus is mainly on China, because China is really running the global growth engine and many hopes depend on China pulling an ace out of its sleeve,” Gregory Pardon, co-investor at Arbuthnot, told Etham.

Stoxx is on track to fall a little more than 1% this month, performing better than US indices, which have been sharply lowered due to expectations of rising Fed interest rates and pressures in the technology sector, which dominates US stock indices.

Thursday night, Apple Warned Because a shortage in the supply chain and shutdowns of Chinese factories could cost it up to $ 8 billion in the quarter to June. Amazon reported this The slowest Quarterly revenue growth, noting a decline in online sales and rising costs.

Shares of Amazon and Apple fell 8.6% and 2.5% respectively in pre-market trading on Friday.

The euro pushed 0.7 percent against the dollar to just below $ 1.06, but remained lower than 4 percent for the month after the week came The weakest level in five yearsFor traders expect the US Fed to move much faster to raise inflation to curb inflation than the European Central Bank.

Traders also reviewed data It shows that growth in some of the eurozone’s major economies, including France, Italy and Spain, weakened sharply during the first quarter, suggesting stagnation in the region facing rising energy and food prices.

Elsewhere, the dollar fell 0.6 percent after the index, which measures the currency against six others, hit the rate. A record of 20 years On Thursday. The markets are directing the Fed to raise its primary credit rate by half a percent at its May meeting, and then by the same amount in the next two meetings.

The yield on the 10-year U.S. Treasury bill, a benchmark for global debt costs, was stable on Friday, but remained around its highest point since the end of 2018.

European shares rise after China stimulus pledge Source link European shares rise after China stimulus pledge

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