Home Commodities Stocks rally, copper extends fall as investors assess recession risk By Reuters

Stocks rally, copper extends fall as investors assess recession risk By Reuters



© Reuters. FILE PHOTO: Men wearing protective masks amid the coronavirus disease (COVID-19) outbreak, use mobile phones in front of an electronic board displaying Japan’s Nikkei index outside a brokerage in Tokyo, Japan June 16, 2022. REUTERS/Kim Kyung-Hoon


By Caroline Valetkevitch

NEW YORK (Reuters) – Stocks on global markets jumped on Friday, with Wall Street up more than 2% and the MSCI global index set for a weekly gain after three straight weeks of declines, as sliding commodity prices eased worries about inflation.

U.S. Treasury yields edged higher but held just above two-week lows.

Investors have been worried that aggressive rate hikes by the Federal Reserve and other major central banks to combat inflation could cause a recession, which would reduce demand for commodities and other items.

Copper prices were set for their biggest weekly fall in a year, with benchmark on the London Metal Exchange 1.4% lower at $8,290 a tonne on Friday. Other industrial metals also tumbled.

Oil prices were higher Friday after falling sharply this week.

“The (stock) market came into this week oversold, so it was time for a bounce,” said Quincy Krosby, chief equity strategist at LPL Financial (NASDAQ:) in Charlotte, North Carolina.

“We’ve seen oil prices come down along with other commodity prices,” she said, adding that the market’s move is reflecting “expectations of at least a marked slowdown if not an out-and-out recession.”

The benchmark last week confirmed a bear market.

In U.S. Treasuries, yields have dropped from more than decade highs reached before last week’s Fed meeting. The U.S. central bank hiked rates by 75 basis points at the meeting.

Fed funds futures traders have lowered expectations on how high the Fed is likely to raise its benchmark rate. They are now pricing for the rate to rise to 3.49% by March, down from expectations last week that it would increase to around 4%. It is currently 1.58%.

The rose 656.17 points, or 2.14%, to 31,333.53, the S&P 500 gained 86.74 points, or 2.29%, to 3,882.47 and the added 234.04 points, or 2.08%, to 11,466.23.

The pan-European index rose 2.62% and MSCI’s gauge of stocks across the globe gained 2.16%.

recently rose 3.39% to $107.80 per barrel and was at $113.40, up 3.04% on the day.

In the foreign exchange market, the fell 0.297%, with the euro up 0.27% to $1.0551.

The Japanese yen weakened 0.08% versus the greenback at 135.04 per dollar.

The battered yen has steadied this week. Japanese inflation topped the Bank of Japan’s 2% target for a second straight month, putting more pressure on its ultra-easy policy stance.

Source link

Previous articleHarris Williams Advises Keensight Capital on its Investment in Lisam Systems
Next articleFundamental VC: VC firm Fundamental VC launches maiden fund; target corpus of $130 million


Please enter your comment!
Please enter your name here