Global shares close in on worst month so far this year
Timilehin Adejumobi
2 min read
Global equities edged up on Wednesday as data suggested U.S. inflation pressures were moderating, but were on course to end August with their worst monthly performance of 2023 so far.
MSCI’s broadest index of global shares (.MIWD00000PUS) added 0.2%, following upbeat moves in Asia that continued to benefit from Chinese measures to boost investment in its beaten-down stock market, and weak U.S jobs data on Tuesday that sparked hopes the Federal Reserve was done with rate hikes.
On Wednesday, European shares nudged higher (.STOXX), while a gauge of Asian shares gained 0.35% (.MIAPJ0000PUS) and Japan’s blue-chip Nikkei touched its highest in over two weeks (.N225).
Wall Street stocks rallied on Tuesday, with all three of its major stock indexes ending sharply higher. Data showed U.S. job openings dropped to the lowest level in nearly 2-1/2 years in July, signalling inflation pressures caused by a tight labour market and companies were easing ahead of the Fed’s Sept. 19 meeting.
“The U.S. labour market is moving towards better balance,” SEB Group U.S. economist Elisabet Kopelman said in a note to clients, “increasing prospects for the Fed to achieve a soft landing for the economy.”
Still, MSCI’s global stock gauge has fallen more than 3% in August, thanks to hawkish signals from the Fed’s latest meeting minutes and chair Jerome Powell’s speech on Friday at the Jackson Hole central bankers’ symposium.
Europe’s Stoxx 600 share index (.STOXX) was steady in early dealings as investors assessed inflation reports from Spain and Germany ahead of the euro zone consumer prices report for August on Thursday.
This report’s information was first seen on REUTERS; to read more, click this link.
