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Shares end sharply higher amid mixed US earnings, weak Reuters economic report


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© Reuters. FILE PHOTO: A man walks under illuminated words “Borse” (exchange) as he walks past the headquarters of Swiss stock exchange operator SIX Group in Zurich, Switzerland November 20. 2017. REUTERS / Arnd Wiegmann / File Photo

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By Katanga Johnson

WASHINGTON (Reuters) – Global stocks rose on Wednesday to close higher as strong earnings from U.S. technology companies and OPEC+’s moderate oil production plan helped counter anxiety ahead of the global markets. weak economic reports.

Investors also rejected the pace of central banks’ rate hikes.

The STOXX index of 600 European companies rose 0.45%, up for a third straight session, to recoup nearly half of losses in January’s global stock movement.

The MSCI Global Stocks Index rose 0.80%.

Crude oil hit a seven-year high and the dollar fell. On Wall Street, a gain of 0.63% and a gain of 0.94%.

Add 0.5%. Last month, the tech index fell as much as 19 percent from its all-time high in November as investors dumped appreciated growth stocks on the prospect of faster-than-expected rate hikes. ants.

Andrew Slimmon, managing director at Morgan Stanley (NYSE: Investment Management).

“Once the fever subsides, it’ll take a pretty long time to complete.”

The unexpected drop in private payrolls helped stabilize US Treasury yields as investors weighed its potential impact in Friday’s broader jobs report.

Euro zone record-high inflation of 5.1% in January defies expectations of a drop to 4.4%, sending German government bond yields to multi-year highs and a strengthening euro .

The European Central Bank has emphasized that price growth is temporary and benign, but markets will be looking for any change in tone https://www.reuters.com/markets/europe/inflation -stations-five-questions-ecb-2022- 01-31 when it meets on Thursday.

Joerg Kramer, chief economist at Commerzbank (DE: ).

Several Asian markets, including China, were closed for the Lunar New Year holidays.

Investor sentiment is swinging between concerns about the Federal Reserve and other central banks’ tightening and confidence in the economic recovery. Wednesday’s earnings outlook is helping to ease uncertainty, but inflation and geopolitical risks remain a threat.

“The battle between higher interest rates and corporate earnings continues,” said Jake Manoukian, head of US investment strategy at JP Morgan Private Bank.

The market is pricing in a series of rate hikes from the Fed and Bank of England, analysts say.

The BoE meets on Thursday and markets expect the central bank to raise the UK rate.

Fed officials sought to limit the chances of a half-point rate hike in March. Although he said he saw three consecutive increases starting in March, Fed President St. Louis, James Bullard, rejected the idea of ​​a move to drop by half a percentage point initially.

Friday’s US nonfarm payrolls data will also be closely watched.

OIL OPEC +

Oil prices jumped on Wednesday, closing at a seven-year high, after OPEC+ held on to its plan to increase output despite pressure from top consumers to ramp up output more quickly.

An OPEC+ source told Reuters that the production group had agreed to increase oil production by 400,000 bpd from March after a briefing.

was recently down 0.22% to $88.01 a barrel and at $89.34, up 0.2% on the day. [O/R]

The bond market sell-off since the start of the year stalled on Tuesday, with the benchmark hovering near a one-week low. [GVD/EUR]

The benchmark US 10-year Treasury yield fell one basis point to 1.768 percent.

Treasury yields, inversely proportional to price, rose in January at their fastest pace by some measure since 2009 as investors began to price in the possibility that the Fed could raise rates as much as five times in the coming year. this year.

rose 0.3% to $1,806.81 an ounce despite the jobs report, bolstering demand for the safe-haven metal amid simmering tensions between Russia and the West over Ukraine. [GOL/]

Risk-sensitive currencies such as the Australian dollar, euro and British pound appreciated. Copper fell 0.29%, with the euro up 0.31% to $1.1304.

The ruble strengthened to a nearly two-week high of 76 against the dollar after the Kremlin said Russia had a plan ready to fend off possible US sanctions if Russia invaded neighboring Ukraine. .



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