Global shares rose on Friday after data showed the U.S. economy was growing robustly and traders awaited a U.S. core inflation report later in the session that may show price pressures are continuing to abate.
MSCI’s all-country equity gauge (.MIWD00000PUS) rose 0.2% following reassuring news on Thursday that the U.S. economy expanded at its fastest rate for almost two years in the third quarter, while the European Central Bank (ECB) also held interest rates steady.
The yield on the 10-year U.S. Treasury, which moves inversely to the price of the debt security and functions as a benchmark for global borrowing costs, rose 3 basis points (bps) to 4.845% after scaling 5% earlier in the week
Economists expect a report on Friday to show U.S. core personal consumption expenditure, the Federal Reserve’s favoured inflation measure, declined to 3.7% in September from 3.9% a month earlier.
Still, analysts noted that any signal central banks’ recent victories against inflation were losing ground could renew speculation about even more rate hikes to come.
“This is a bond market that at the moment doesn’t need much of an excuse to fire a tantrum,” said Simon Harvey, head of FX analysis at Monex Europe.
The 10-year yield, which can hit stock prices when it rises by varying the discount rate investors use to value companies’ future cashflows, has climbed from around 4% in early August.