© Reuters. FILE PHOTO: A man wearing a protective mask amid the coronavirus disease (COVID-19) outbreak, looks at a table showing the exchange rate of the Japanese yen against the US dollar outside a brokerage firm in Tokyo, Japan June 16, 2022. REUTERS / Kim Kyung -Hoon
By Chuck Mikolajczak
NEW YORK (Reuters) – A gauge of global stocks was higher for a fourth straight day in volatile trading on Wednesday as investors gauged the early stages of US corporate earnings season , while the dollar rose ahead of the European Central Bank’s rate decision on Thursday.
On Wall Street, US stocks edged higher, led by gains on Nasdaq as growth stocks were boosted by a positive outlook from Netflix (NASDAQ:), up 6.26%.
With 60 companies reporting earnings, 78.3% topped analyst expectations, according to Refinitiv data, slightly below the 81% rate in four quarter but much higher than the 66% rate since 1994.
Steve Sosnick, chief strategist at Interactive Brokers (NASDAQ:): “Investors seem to be willing to reward rather than punish right now because there is already a lot of pessimism brewing in sentiment,” said Steve Sosnick, chief strategist at Interactive Brokers (NASDAQ:). of the trader.
“If companies can come up with some good results, that could make people more willing to buy than sell.”
Decreased 27.87 points, or 0.09%, to 31,799.18; The S&P 500 rose 16.4 points, or 0.42%, to 3,953.09; and added 152.77 points, or 1.3%, to 11,865.92.
Meanwhile, the US dollar higher after three consecutive days of decline sent the greenback to a two-week low as expectations of upcoming rate hikes from the ECB and US Federal Reserve changed. , with the market anticipating a larger 50 basis point increase from the ECB and a 75 basis point increase from the Fed as they try to combat inflation.
Most recently last week, many predicted the ECB would raise 25 basis points while the Fed would likely raise rates by 100 basis points.
The pan-European index lost 0.21% and the MSCI global equity index gained 0.39%. Four consecutive days of gains lifted the MSCI index to a three-week high of 617.30 while European stocks posted a three-day winning streak.
European shares ended lower as uncertainty swirled around gas supplies to the region and the future of Italian Prime Minister Mario Draghi. Draghi won a motion of confidence after closing trade in the Senate but the three main coalition parties refused to participate in the vote, effectively derailed his administration.
On Wednesday, the European Union asked member states to cut gas use by 15% until March as an emergency measure after President Vladimir Putin warned that supplies from Russia via The largest pipeline to Europe could be further reduced and possibly even stopped.
Copper was up 0.459%, with the euro down 0.58% at $1.0165.
The Japanese yen weakened 0.04% against the greenback at 138.27 per dollar, while the pound last traded at $1.1961, down 0.28% on the day.
In addition to the ECB, the Bank of Japan will also announce a policy decision on Thursday, but is not expected to make any changes to its extremely loose monetary stance.
The last benchmark 10-year bond was down 5/32 in price to 3,0359%, from 3.019% late Tuesday.
After a volatile session on Tuesday, oil prices fell after US government data showed gasoline demand fell during the peak summer driving season and as central banks raised interest rates to fight inflation. inflation raised concerns that the economy could slow down and reduce energy demand.
was recently down 2.07% to $102.06 a barrel and at $106.43, down 0.86% on the day.