Global shares rise, US shares mixed as Fed seen on target for rate hike
Timilehin Adejumobi
1 min read
Global stock markets rose while shares on Wall Street were mixed on Tuesday after U.S. retail sales rose less than expected in June, but consumers boosted or maintained spending elsewhere, raising the odds the Federal Reserve hikes interest rates next week.
Retail sales increased 0.2% last month, the U.S. Commerce Department said, but, excluding automobiles, gasoline, building materials and food services, core retail sales increased 0.6% in June. Headline data for May also was revised higher to show sales gaining 0.5% instead of 0.3% as previously reported.
The dollar slid to a 15-month low against a basket of currencies, and Treasury yields also fell even as futures pointed to a 97.3% probability that the Fed will hike rates by 25 basis points on July 26, according to CME Group’s FedWatch Tool.
The dollar index fell 0.12% and the euro rose 0.08% to $1.1243, after hitting a fresh 17-month high of $1.1276
The major U.S. stock indices were mixed, with the S&P 500 and Dow Industrials rising and the Nasdaq falling, in a sign investors are shifting investments away from the tech-oriented megacap stocks that have dominated returns this year.
Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) led the Nasdaq lower.
This report’s information was first seen on REUTERS; to read more, click this link.
