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Stocks gain sharply for days and weeks, while copper falls further

Stocks gain sharply for days and weeks, while copper falls further
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  • The S&P 500 has gained the most daily pct since May 2020
  • Copper falls again, the oil ends higher
  • Treasury yields edge up

NEW YORK, June 24 (Reuters) – Stocks in global markets rose on Friday and recorded strong gains for the week as a recent slide in commodity prices eased concerns about inflation and the prospect of a rate hike.

The S&P 500 rose 3.1% to its biggest daily percentage increase since May 2020 and the MSCI Global Index rose 4.8% for the week, snapping the fall for three consecutive weeks. Read more

U.S. Treasury yields have risen from a two-week low.

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Investors are concerned that aggressive interest rate hikes in the face of inflation by the Federal Reserve and other major central banks could lead to a recession, which will reduce demand for goods and other items.

“The (stock) market has sold out this week, so it was a bounce time,” said Quincy Crosby, chief equity strategist at LPL Financial in Charlotte, North Carolina.

“We have seen oil prices fall along with other commodity prices,” he said, reflecting the market’s move to “expect at least a marked recession if not an out-and-out recession.”

Also, the University of Michigan’s consumer sentiment survey was positive for stocks falling above five-year inflation expectations, Crosby said. It fell to 3.1 from an initial 3.3% estimate in mid-June. Read more

The benchmark S&P 500 confirmed a bear market last week.

Dow Jones Industrial Average (.DJI) 823.32 points or 2.68% to 31,500.68, the S&P 500 (.SPX) The Nasdaq Composite rose 116.01 points, or 3.06%, to 3,911.74 (.IXIC) 375.43 points or 3.34% to 11,607.62.

For the week, the S&P 500 rose 6.4%, the Dow added 5.4% and the Nasdaq rose 7.5%.

Pan-European STOXX 600 index (.STOXX) Rose 2.62% and measured MSCI’s stock worldwide (.MIWD00000PUS) 2.63% increase.

The benchmark copper on the London Metal Exchange was 0.5% lower at $ 8,367 a tonne after touching 8,122.50, 25% lower than the March high and the lowest level since February 2021. Read more Other industrial metals have also sunk.

Oil prices were higher on Friday but fell to their second weekly fall. Read more

On the day, Brent crude settled at $ 3.07, or 2.8%, at 113.12 per barrel, while US West Texas Intermediate crude settled at $ 3.35 or 3.2%, at 7 107.62.

In the Treasury market, yields have fallen from more than a decade of highs reached before last week’s Fed meeting. The US Federal Reserve raised the rate by 75 basis points at the meeting.

Fed-funded futures traders are now setting the benchmark rate to rise by about 3.5% by March, down from last week’s expectation that it would rise to about 4%. ,

The benchmark 10-year yield was 3.125%. They failed from 3.498% on June 14, the highest since April 2011.

In the forex market, the US dollar weakened and fell for the first time this month.

In New York trading in the afternoon, the dollar index, which measures the U.S. unit against six major currencies, fell 0.2% to 104,013. Read more

The US dollar slide has also encouraged commodity-centric currencies such as the Australian dollar and the Norwegian crown. Aussie rose 0.8% to US $ 0.6946.

Spot gold added 0.2% to 1,826.39 per ounce

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Reporting by Caroline Valetkevich in New York Karen Bretel in New York and Caroline Cohen Additional Reporting in London Edited by David Gregorio and Matthew Lewis

Our value: Thomson Reuters Trust Policy.

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