- S&P futures grow 0.9%, European equities 1.5%
- MSCI’s global stocks forecast a 2.5% weekly increase.
- Copper falls more than 7% a week, oil 2%
- 10-year German bond yields fall 4 bp
LONDON, June 24 (Reuters) – Global equities headed for their first weekly gain in a month and Wall Street was due to open higher on Friday in hopes that copper and other commodity falls could slow rampant inflation.
The week has been marked by sharp falls in commodities amid concerns that the global economy appears volatile and that rising interest rates are hurting growth, leading traders to lower inflation expectations and reduce some bets on the size of the uploads.
“Inflation will remain high and above target, but it is increasingly likely to start peaking in the coming months,” said Andrew Hardy, investment manager at Momentum Global Investment Management.
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“Markets could take it reasonably well: there’s potential for recovery later in the year.”
US S&P futures rose 0.9% and MSCI’s global stock index (.MIWD00000PUS) rose 0.5% on the day and 2.5% on the week. set for the first weekly gain since May.
Copper, a benchmark for economic production with its wide range of industrial and construction uses, is heading for its strongest weekly drop since March 2020. It fell in London and Shanghai on Friday and has dropped more than 7% during the week.
The pond fell nearly 15 percent on Friday, bringing losses this week to a record 25 percent, as investors fear a slowdown in economic growth will reduce demand for the metal used in welding for electronics.
Brent crude futures rose more than $ 1 to $ 111.28 a barrel on Friday, but continue to fall 2% during the week and 10%
per month, while benchmark grain prices plunged, with Chicago wheat more than 8% during the week.
Gold rose 0.2% to $ 1,826.30 an ounce, but was heading for a second consecutive weekly drop.
Falling prices have offered some relief to stocks, as energy and food have been the engines of inflation.
European stocks (.STOXX) rose 1.5%, on the verge of small weekly gains. The British FTSE (.FTSE) rose 1.3%, also showing a small rise during the week.
“For long-term investors, the story hasn’t changed: Falling markets offer more attractive valuations of high-quality companies with a competitive edge,” said Lewis Grant, Federated’s senior global equity portfolio manager. Hermes.
The Federal Reserve’s commitment to curbing peak inflation for 40 years is “unconditional,” U.S. Central Bank chief Jerome Powell told lawmakers Thursday, though he acknowledged that interest rates are much higher. highs can increase unemployment. Read more
Germany is heading for a gas shortage if Russian gas supply remains as low as it is now due to the Ukraine conflict, and certain industries would have to be shut down if there is not enough in the winter, he said. say Economy Minister Robert Habeck in Der Spiegel magazine. Friday. Read more
Ukraine said Friday that Russian forces had “completely occupied” a city south of the strategically important city of Lysychansk in the eastern Luhansk region. Read more
Bonds rose sharply in the hope that bets on aggressive rate hikes should be reduced, and two-year German yields fell 26 basis points on Thursday in their biggest drop since 2008.
The 10-year German yield fell 4 bp on Friday after falling 29 bp on Thursday, and was heading for its first weekly drop since mid-May.
However, the 10-year benchmark Treasury yield gained 4 bp to 3.1076%, after falling 7 bp this Thursday.
Bond funds suffered their biggest outflows from April 2020 during the week to Wednesday, while stocks lost $ 16.8 billion as markets were trapped in the bearish maximum mode, showed Friday’s weekly BofA flow analysis.
The U.S. dollar has fallen from a 20-year high last week. The euro gained 0.23% to $ 1.05470 and the US currency remained flat at 135.03 yen.
The battered yen has stabilized this week and gained some support on Friday from Japanese inflation which topped the Bank of Japan’s 2% target for the second month in a row, further putting pressure on its ultra-easy political stance. Read more
MSCI’s broader Asia-Pacific stock index outside Japan (.MIAPJ0000PUS) rose 1.1%, helped by the rescue of Alibaba’s short sellers (9988.HK), which rose nearly a 6%, amid indications that China’s technological repression is slowing.
The Japanese Nikkei (.N225) rose 1.2% to a weekly gain of 2%.
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Additional reports from Brijesh Patel in Bangalore, Tom Westbrook in Singapore and Sam Byford in Tokyo; edition by Jacqueline Wong, John Stonestreet and Andrew Heavens
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