© Reuters. A man wearing a protective face mask, in the midst of the coronavirus pandemic (COVID-19), walks past a screen showing the Shanghai Composite Index, the Nikkei Index and the Dow Jones Industrial Average outside a brokerage house in Tokyo, Japan, February 14, 2022 REUTERS / Kim
By Carolyn Cohn and Stella Qiu
LONDON / BEIJING (Reuters) ̵[ads1]1; World equities were heading for their first weekly rise in eight weeks on Friday with a more optimistic view of the results as the dollar reached a one-month low after the Federal Reserve’s minutes suggested it could put the brakes on rapid rate hikes later this year.
Optimistic US Revenue Overnight Revenue from Department Store Operator Macy’s Inc (NYSE 🙂 and Low Cost Chains Dollar General Corp (NYSE 🙂 and Dollar Tree (NASDAQ 🙂 increased their shares.
The Fed’s minutes from the May meeting published on Wednesday confirmed two further increases of 50 basis points each in June and July, but politicians also hinted at the potential for a break later in the year.
“It’s all flowed through from FOMC (Federal Open Market Committee) minutes,” said Giles Coghlan, chief currency analyst at HYCM.
“Investors were relieved that it was not a 75 basis point hint.”
The markets will focus on the April core PCE price index for the US, which comes later on Friday for further signs of whether inflation was about to warm, Coghlan added.
MSCI World Stock Index rose 0.38%. It was on its way to an increase of 3.2% a week and an increase of almost 6% from the lowest level of 18 months two weeks ago.
was flat after the increase 1.61%, rose 1.99%, and jumped 2.68% on Thursday.
European equities peaked in 10 days, rising 0.18%. fell 0.23%, from the previous day’s peaks in three weeks.
Hong Kong shares rose 2.7% after better-than-expected revenue growth in the first quarter from Ali Baba (NYSE 🙂 and Baidu (NASDAQ :). Asian stocks also benefited from hopes of stabilizing ties between China and the United States and the stimulus of several Chinese authorities.
The United States did not want to block China from growing its economy, but wanted the country to follow international rules, Foreign Minister Antony Blinken said on Thursday in comments that some investors interpreted as positive for bilateral ties.
advanced 0.7%, mainland China’s blue chips rose 0.2%, and Australia’s resource-heavy index rose 1.1%.
The fluctuation in sentiment drove the dollar to a one-month low against an index of currencies, down 3.2% from 20-year highs reached earlier this month. The euro reached a one-month high and was up 0.11%.
Oil prices remained close to two months high, heading for their biggest weekly jump of 1-1 / 2 months, supported by the prospect of an EU ban on Russian oil and the upcoming US driving season.
increased 0.08% to $ 114.20 a barrel. Brent rose 0.28% to $ 117.73 per barrel. [O/R]
The interest rate on the benchmark index fell to 2.7468%. It had reached a three-year high of 3.2030% earlier this month due to fears of rapid increases by the Fed could undermine long-term growth.
The two-year return, which rises with traders’ expectations of higher Fed fund interest rates, softened to 2.4678% compared to a close of 2.4888%.
“All in all, a pronounced decompression of stress,” analysts at ING said in a note.
German 10-year bond yields fell to 0.982%.
rose 0.43% to $ 1857.79 per ounce. [GOL/]