Stocks on course for best month since November 2020

Global equities headed for their best month since late 2020 as robust results from major tech companies signaled the sector’s resilience to an economic slowdown and traders scaled back expectations of central bank rate hikes.

The FTSE All World Index of developed and emerging market equities rose 5.8 percent in July, staying on track for its best month since November 2020. The rise reflected significant gains for the US stock market of $44 trillion US dollars reflected.

Amazon’s shares rose 14 percent after the close in New York after the e-commerce giant beat analysts’ quarterly sales forecasts and provided an upbeat outlook for the remainder of the year on strength in the cloud computing business.

This capped a week of well-received financial updates from Microsoft, Apple and Google’s parent Alphabet, all of which gave a more optimistic outlook than investors had feared, boosting the technology sector, which dominates US indices and an outsize weight in global markets Has.

Wall Street stock futures rallied on Friday, with contracts on the tech-heavy Nasdaq 100 up 1.5 percent and those on the broader S&P 500 up 0.8 percent. By Thursday’s close, the S&P 500 was up 7.6 percent in July. The European Stoxx 600 should also post a big monthly gain, up 7 percent since the end of June.

Data on Thursday showed that the US economy had signed for the second quarter in a row This sparked a rally in government bonds as markets assumed the Federal Reserve was less likely to proceed with aggressive rate hikes to counter rising inflation.

The Fed this week raised interest rates by 0.75 percentage points for the second straight month, bringing them within a range of 2.25 to 2.5 percent.

“Economic data wasn’t that strong [and] this was viewed as less aggressive monetary policy going forward,” said Antoine Lesne, head of strategy and research for State Street’s SPDR ETF business.

“The Fed will continue to rise,” he added, “but not as much as the market previously anticipated.”

The yield on the benchmark 10-year Treasury bond, a barometer of the cost of borrowing around the world, fell 0.01 percentage point to 2.7 percent on Friday as the bond’s price rose. That key bond yield was trading at about 2.8 percent in early July and about 3.5 percent in mid-June.

The two-year Treasury yield, which reflects interest rate expectations, fell sharply on Thursday, slipping another 0.04 percentage point to 2.83 percent.

The dollar index, which tracks the US currency against six others, fell 0.7 percent.

Stocks on course for best month since November 2020 Source link Stocks on course for best month since November 2020

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