Global shares rise; Cryptocurrency Stabilization
International stocks generally rose amid no news on inflation and interest rates, while US markets were closed for Sixteenth Holiday.
Stocks and bonds have been hit globally this year. Fueling the sell-off was driven by the Federal Reserve and other central banks to quell inflation, and fears that higher borrowing costs would push economies into recession.
This week, investors will analyze comments from Fed Chairman Jerome Powell before Congress on Wednesday and Thursday. They will look for clues about a second’s chance three quarters in a row interest rates in July. Data on housing, manufacturing output and consumer sentiment will help traders gauge the strength of the economy, while Inflation rose to the highest level for over 40 years.
The US stock and bond markets were closed for the first time on Monday for the June 13 holiday. The S&P 500 index last week suffered its biggest percentage drop since the Covid-19-driven crash in March 2020 after the Fed’s decision to raise interest rates by three-quarters of a point spooked investors. be afraid. Futures for the benchmark index rose 0.8% on Monday.
Cryptocurrencies stabilized after volatile weekend trading. Bitcoin changed hands at $20,550, slightly above its Sunday 5 p.m. level. Digital currencies have tumbled in recent weeks and major cryptocurrencies have laid off employees.
Edward Park, chief investment officer at
Investors are expected to return to buying stocks and other riskier assets this week, encouraged by the lack of data on US inflation. Stocks will remain volatile until energy markets begin to fall, he said, easing pressure on central banks to tame consumer price gains.
In commodities, the price of natural gas rose 6.1% to 124.96 euros, or about $131, a megawatt hour in Europe. Russia has continued to pump gas at below capacity through Nord Stream to Germany.
Brent crude oil futures fell 0.6 percent to $112.44 a barrel, extending a sharp decline that began on Friday. Traders are weighing the difficulty many major crude-producing nations are having in increasing output in the face of the prospect of an economic downturn denting oil demand.
“It is clear that the market is more concerned with the risks,”
Strategist Jim Reid, who thinks the US will enter a recession in 2023.
The Stoxx Europe 600 index was up 0.7% on Monday. Profits from retail, auto and travel and entertainment companies offset losses in construction and basic resources stocks.
France’s CAC 40 rose 0.3% after President Emmanuel Macron loses majority in Parliament. The outcome of the parliamentary elections will make it difficult for the French leader to push his pro-business agenda.
Among individual European stocks,
rose 6.6% after analysts at Jefferies raised their price target for the French automaker.
An Irish manufacturer of insulation and construction materials, fell 13% after it said trading conditions had deteriorated over the past two months.
In Asia, Korea’s Kospi fell 2%, due to
fell after analysts at
decrease in the target price of the stock. Japan’s Nikkei 225 lost 0.7%. China’s Shanghai Composite Index was flat and Hong Kong’s Hang Seng was up 0.4%.
Write to Joe Wallace at [email protected]
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