Stocks Hover Over Bear Territory, German Ifo
On Monday, the stocks were above the protection market area. The economic consequences of the Ukraine war and persistently high inflation limited the profitability of the stock criteria. Oil has risen, with gold extending its recent gains. The dollar fell as investors stopped betting on the U.S. currency; Further progress resulted from rising interest rates. In Europe, investors were comfortable with the S&P 500 index on Wall Street, which ends on Friday, away from the bear market area. This means a 20% decrease compared to the January 3 record.
The MSCI, All Countries Index, rose 0.16%; Fell again by almost 18% to a record high in January. The S&P index suffered its seventh weekly drop. S&P 500 futures rose 0.7%. This indicates a steady opening in New York. Analysts, however, were cautious. The market is still quite concerned about sticky inflation. The STOXX index of 600 European companies rose 0.7% to 435.7 points. This is about 13% behind the January record.
Stocks and Hopes
U.S. stock exchanges have suffered more than Europe. They were overrated. The U.S. Federal Reserve is more aggressive in its fight against inflation than other factors. There has been no such brutality on the part of the Bank of England or the European Central Bank. Therefore the losses in Europe have been slightly more modest. The president of the ECB said that the interest rate “rise” may take place at the July meeting.
Germany’s Ifo Business Climate Index highlighted sustainability in Europe for March, which suddenly increased to 93 in May. This lifted the market expectations for a fall to 91.4. The gradual return of optimism continues. However, only if the focus is limited to the concise run. The DAX Blue Chip Index rose 1%.
The World Economic Forum will hold its first personal meeting in two years in Switzerland; For the next four days, Panels on economic and inflation prospects with central banks and the International Monetary Fund.
Conclusion
The dollar index that controls the U.S. unit against the currencies of other major trading partners; Decreased by 0.3% to 102.60. The index rose about 16%, from a two-decade high to 12 months to mid-May. According to strategists, the dollar may reach a peak, Given Europe’s resilience to energy shock and potential mitigation of blockade in China. The Treasury 10-year benchmark yield increased to 2.8045%. Eurozone government bond yields also rose.
U.S. crude rose 1% to $111.43 a barrel. Brent crude oil price increased by 1.15% and reached $113.85 per barrel. Concerns about global economic growth have led to a resurgence of support for gold. The price of gold recorded its first weekly increase since mid-April. The demand for safe-haven has risen amid concerns about economic growth amid high inflation. The weak U.S. dollar has also boosted investor appetite. Spot gold was up 0.6% at $1,857.8 an ounce.
