European stocks rose Thursday as traders weighed strong US economic data released during the previous session and the minutes of the Fed’s latest policy meeting.
Stocks Europe 600 gauge rose 0.4%. The regional index fell 1.3% on Wednesday and Tuesday, recording consecutive losses after falling on each of the last four trading days. Last week, different countries in the block introduced fresh coronavirus curbs in response to the surge in cases.
Germany’s Dax index rose 0.2% and France’s CAC 40 gauge rose 0.5%. London’s FTSE 100 Index rose 0.3%.
After the re-enforcement of pandemic regulations in countries such as Germany and the Netherlands, Goldman Sachs dropped 0.2 percentage points to 0.8% on Wednesday in the fourth quarter of this year. Banks lowered their first-quarter 2022 estimates by 0.3 percentage points to 0.6 percent.
“The downgrade is driven by expectations of new weaknesses in Covid-sensitive services such as hospitality, art and entertainment,” he added, adding that the impact on inflation is likely to be small. “”[We] We expect a recovery in rapid growth in the second quarter as the restrictions have been lifted. “
In the United States, the S & P 500 index for high-end equities rose 0.2% on Wednesday, and the technology-focused Nasdaq Composite index rose 0.4%. These moves followed fresh data showing that US weekly unemployment claims reached their lowest level since 1969.
Other data Inflation measurement Since then, the Fed has recorded the largest year-over-year surge in October since the 1990s. The Core Consumer Expenditure Index recorded a 4.1% increase, in line with economists’ expectations, but increased from 3.7% in September.
Meanwhile, the Fed’s November policy meeting minutes showed that authorities “emphasized the importance of maintaining flexibility” as the $ 120 billion monthly pandemic asset purchase stimulus was withdrawn. I did.
Officials, who are expected to start raising interest rates only after such tapering, said inflation may “take longer to subside than previously assessed.”
The US stock market and Treasury market were closed on Thursday due to Thanksgiving holidays.
Thanksgiving vacation is “an excuse for all markets to be very slow,” said Tatjana Greil Castro, co-head of the public market at Muzinich & Co. You should hardly see it. “
She argued that higher energy and food prices would stay here, and that inflation was likely to prove “sticky” in the long run.
In the European government bond market, yields on 10-year German government bonds were flat at minus 0.25% on Thursday. Bond yields are inversely proportional to price.
The Federal Reserve, the ECB and the Bank of England haven’t started raising rates yet, but South Korea has raised borrowing costs for the first time in three months after the Reserve Bank of New Zealand announced on Wednesday that it would tighten monetary policy. ..
In currencies, the dollar index, which measures the greenback against the other six currencies, fell by about 0.1%. The euro, which reached its lowest against the dollar since June 2020 on Wednesday, has risen above the $ 1.12 threshold.
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European stocks tick up after Wall Street closes higher Source link European stocks tick up after Wall Street closes higher