Wall Street and European equities rebounded Thursday as investors’ pessimism about inflation and potential interest rate hikes was eased by corporate earnings reports that showed continued strong consumer demand.
The S & P 500 Index for Best Equity rose 0.9% in early September, about 3% below its record high, after weeks of volatile trading driven by fears of stagflation. The technology-focused Nasdaq Composite rose 1% and the European Stoxx 600 equity benchmark rose 1.1%.
The move came from the Taiwan Semiconductor Manufacturing Company, which is used in everything from the iPhone to the car, with a 14% year-on-year increase in third-quarter profits.
Citibank and Bank of America Post quarterly financial results This exceeded analysts’ expectations as both US groups released funds from bad debt reserves as a sign of growing confidence in borrowers’ ability to repay.
Luxury goods group LVMH said earlier this week that demand in China was held up by a slowdown in manufacturing and a government crackdown on real estate speculation.
Marten Giadink, Head of European Equity at NN Investment Partners, said: “Some good [earnings] The incoming report gave us the belief that things wouldn’t be so bad if you were doing stock picking correctly. ”
Data released Wednesday showed headlines U.S. consumer prices have risen September was 5.4% year-on-year, an increase of more than 5% for the fifth straight month.
Thursday morning, official Chinese action Factory gate price It surged 10.7% in September. This is the fastest rise in 25 years after record coal prices have pushed manufacturers’ costs up.
The minutes of the latest meeting of the US Federal Open Market Committee, released Wednesday, are from its policy makers. Ready to cut With $ 120 billion in bond purchases each month, the pandemic eased the financial position.
However, investors were in a position to embrace this signal with the recent surge in US inflation.
Yields on 10-year government bonds, which are inversely proportional to price, fell 0.01 points to 1.535 percent on Thursday. The benchmark debt yield rose from about 1.3% at the end of last month as long-term inflation outlook, which undermines the value of bond products, pushed down government bond prices.
Meanwhile, US President Joe Biden from a large US company Extend working hours Try to alleviate supply chain bottlenecks. The White House is also working with energy producers to help reduce fuel costs, Reuters reported.
Brent crude, the international oil benchmark on Thursday, rose 0.8% to $ 84.04, Russia’s Increased supplyDespite supportive comments by President Vladimirputin last week.
In Asia, China’s CSI 300 stock index fell 0.5%. Japan’s Nikkei 225 rose 1.5% as exporters were boosted by the near-lowest yen depreciation against the dollar since November 2018.
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Wall Street stocks rally as upbeat earnings balance inflation fears Source link Wall Street stocks rally as upbeat earnings balance inflation fears