European stocks and Wall Street futures rose early Monday as traders tried to stop the decline in global stocks, driven by rising inflation and fears of the collapse of large economies into recession.
The Stoxx Europe 600 stock index added 1.1% in early trades and the London FTSE 100 index rose 0.8%. It echoed a late turn on Wall Street on Friday, when the S&P 500 stock index briefly Entered Bear market territory – defined as a 20 percent drop from the most recent peak – before recovering to a 0.01 percent higher close.
Futures trading suggests that S&P will add 1.2% to New York early deals, and the technology-focused Nasdaq 100 will also gain 1.2%.
“The stock seems to have started another substantial rise in the bear market,” Morgan Stanley strategist Michael Wilson said. “After that, we remain confident that prices are still ahead of us.”
Global stocks plummeted this year as inflation – driven by reopening economies from the Corona virus shutdown and Russia’s invasion of Ukraine disrupts fuel and food prices – Reach decades’ peaks In many countries.
Central banks, including the US Federal Reserve and the Bank of England, have signaled that they will raise lending costs until consumer prices stabilize, hurting the valuations of stocks that previously flattered particularly low interest rates.
Meanwhile, Quarterly earnings Large U.S. companies, including Walmart and Target, noted that consumer spending was hurt due to higher living costs.
“Reading the bottom of the markets would be much more compelling if the risks of recession were already priced, and they are not,” ING strategists said in a comment to clients.
In Asia on Monday, Hong Kong’s Hong Kong Stocks fell 1.3% on Monday, raising its loss since the beginning of March to around 10%, and tougher fixtures against China’s corona hurt investors’ appetite for backing business in the region.
Continental China’s CSI 300 traded down 0.6%, though the Nikkei 225 in Tokyo added 1%.
The U.S. dollar, which measures the U.S. dollar against six others, fell 0.5 percent as analysts asked whether a rise in the dollar caused by investors selling other assets went too far.
“The market has accumulated a huge amount of dollars in recent months,” said Deutsche Bank strategist George Servalos, “which has led to a very significant overestimation of the dollar.”
The euro rose 0.5% against the US currency on Monday, buying $ 1.06. Sterling added 0.7% to just under $ 1.26.
Government bond prices softened, following gains on Friday as investors rushed to pick up assets. The 10-year yield on the U.S. Treasury bill, which underpins global asset valuations, added 0.05 percentage points to 2.8 percent. Germany’s corresponding bond yield rose by 0.02 percentage points to 0.97%.
Brent crude rose 0.8 percent to $ 113.5 a barrel.
European shares rise as traders assess global economic outlook Source link European shares rise as traders assess global economic outlook