Wall Street stocks shook near historic peaks on Friday, but European stocks helped the market shake off the fear of stagflation that dominated investor thinking in early fall. Has risen.
The Stoxx Europe 600 stock index rose 0.7% in the afternoon trading in London, up 4% in October so far.
The index came in September when global stock markets were squeezed by rising energy costs, pandemic-related supply chain disruptions, and concerns about stagflation caused by central banks expecting to raise interest rates to combat high consumer prices. We have recovered all the losses incurred. ..
“So far, early commentary from the firm suggests that the strength of demand hasn’t been compromised,” said Barclays strategist, led by Emmanuel Cow, in a note to customers.
This week, consumer goods groups Unilever and Procter & Gamble I managed to raise the price To pass on higher input costs to customers.On Thursday, electric car maker Tesla Record high quarterly profitHelps raise Wall Street’s excellent S & P 500 index to a new closing price. Early in trading on Friday, S & P remained almost unchanged, with the tech-intensive Nasdaq Composite falling 0.6%.
Neuberger Berman’s Chief Investment Officer for Multi-Assets, Erik Knutzen, said he expects the vehicle to be a potentially volatile vehicle “from here.”
“There are still a lot of worries to get over,” he said. “I’m looking for a lower entry point before stacking.”
Meanwhile, central banks are working on how to respond to inflationary shocks when economic growth is slowing.
Hugh Pill, chief economist at the Bank of England, told the Financial Times Thursday about the headline rate of inflation in the UK. Can exceed 5 percent Next year, the central bank said it would make a “living” decision on whether to raise interest rates from its current lows next month.
According to Barclays Cow, the interest rate and currency markets are currently “the Fed will raise multiple rates next year and the BoE will raise multiple rates in December.”
The Federal Reserve Board of Governors said in a beige book of economic conditions released earlier this week that the recovery of US growth from the coronavirus shock was a supply chain shock, a shortage of workers, and the continuation of the virus. He said he has now “slowed down” because of the spread of the virus.
Yields on 2-year Treasuries, inversely proportional to price and reflecting monetary policy expectations, rose 0.02 points to 0.46 percent on Friday. This yield is the highest since March 2020, when the Fed reduced borrowing costs to zero during the coronavirus crisis.
Traders have also withdrawn from the benchmark Treasury for 10 years as inflation expectations have made fixed-rate securities less attractive. Yields on Friday’s 10-year bond are stable at 1.67%, approaching the highest since May.
The Asian market was mixed. China’s CSI300 index rose 0.6%, but Tokyo’s Topix closed almost flat.
The dollar index, which measures the greenback for six currencies, fell 0.1% due to a growing desire for more risky assets. The dollar gauge hit a year-long high in September, but fell 0.6% this month.
Oil benchmark Brent crude rose 0.8% to $ 85.28 a barrel, remaining close to its highest level in three years.
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