Global stocks set for best week in a year, focus turns to U.S. jobs
2 min read
Global stocks were on track for their biggest weekly rise in a year on Friday as investors cheered a pause in U.S. interest rate hikes, while the dollar was on the back foot.
Trading on Friday was relatively subdued, however, as investors awaited key U.S. employment data later in the day.
The MSCI World stock index (.MIWD00000PUS) has risen 4.3% since Monday, which would be the largest weekly rise since November 2022. The index was up 0.23% on the day.
Europe’s benchmark Stoxx 600 equity index (.STOXX) was 0.16% higher on Friday and was set for a weekly increase of 3.4%, its biggest since March. Germany’s DAX (.GDAXI) was 0.18% higher and Britain’s FTSE 100 (.FTSE) rose by the same amount.
The rally in stocks came as bond yields tumbled after the Fed left interest rates steady for a second meeting running on Wednesday and the Bank of England followed suit on Thursday.
Central bank officials stressed that more may need to be done to tackle inflation, but many investors believe the next move in borrowing costs is likely to be down.
“What you hear from basically all the major central banks over the last week…, in their mind I think they’re all on hold,” said Samuel Zief, head of global FX strategy at JPMorgan Private Bank. The European Central Bank held rates last week.
“Once the market can become convinced that all these central banks are on hold…, that can encourage bond yields to move lower.”
This report’s information was first seen on REUTERS; to read more, click this link.
