简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:The dollar rose on Thursday, hitting a 16-month high a day after the strongest U.S. inflation reading in more than three decades, while equities rebounded on expectations higher consumer prices will help corporate growth.
The dollar rose on Thursday, hitting a 16-month high a day after the strongest U.S. inflation reading in more than three decades, while equities rebounded on expectations higher consumer prices will help corporate growth.
European shares advanced after Goldman Sachs said regional earnings have been resilient to supply chain snags, a message that echoed on Wall Street as investors viewed the impact on rising prices as temporary but positive for corporate profits.
“Inflation in and of itself isn't always a bad thing for the equity market,” Don Townswick, director of equity strategies at institutional asset manager Conning. “Typically tightening happens when the economy is doing really well, so merely the prospect of some higher interest rates isn't a problem.”
Rising producer prices historically have signaled higher operating margins, which are not reflected in next year's earnings estimates, according to Andrew Slimmon, a managing director at Morgan Stanley Investment Management.
“We think earnings revisions for next year will have to go back up again - a positive for 2022,” Slimmon said in a note.
The dollar index, which gauges the currency against six peers including the yen and euro, rose further after posting on Wednesday its biggest daily jump since March following a higher-than-expected rise in U.S. consumer price data. [/FRX]
The CPI index posted its biggest monthly gain in four months to lift the annual increase in inflation to 6.2%, the strongest year-on-year advance since November 1990.
The dollar pushed the euro below $1.15, leaving the next major chart support level down at $1.12. European stocks moved higher, sensing the potential for a competitive boost.
MSCI's all-country world index closed up 0.07% as Wall Street pared gains at the close. The broad STOXX Europe 600 index rose 0.32% to end at a record closing high.
On Wall Street, the Dow Jones Industrial Average slid 0.44%, while the Nasdaq Composite advanced 0.52% and the S&P 500 added 0.06%, almost turning negative at the bell.
GRAPHIC-U.S. 'real' yields now lower than those in emerging markets:
Tesla slid 0.4% a day after clawing back heavy losses earlier this week following regulatory filings that showed founder and Chief Executive Elon Musk had sold about $5 billion in the past few days. Tesla is down 13% for the week.
Walt Disney fell 7.1% to lead declines among Dow components and the S&P 500, as it reported the smallest rise in Disney+ subscriptions since the service's launch and posted downbeat profits at its theme parks. [.N]
Gold prices neared five-month highs they touched the previous session as investors have sought inflation hedges. Gold jumped to a five-month high of $1,868.20 overnight before easing a bit on Thursday.
U.S. gold futures for December delivery settled 0.8% higher at $1,863.90 per ounce.
Oil rose above $83 a barrel before easing a bit as the market grappled with a stronger dollar and concerns about faster U.S. inflation after the Organization of the Petroleum Exporting Countries cut its 2021 oil demand forecast due to high prices.
Brent crude settled up 23 cents at $82.87 a barrel. U.S. crude rose 25 cents to settle at $81.59 a barrel.
Bitcoin hit a fresh record at $69,000 before dipping back to trade about 0.19% higher around $65,046.30.
The U.S. Treasury market was closed in observance of Veterans Day, or Armistice Day elsewhere.
For more Forex news, please download WikiFX- the Global Forex Regulatory Inquiry APP.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
The U.S. equity market experienced one of its worst trading days this year, with the Nasdaq leading the decline, plunging more than 700 points in the last session. Investor concerns over the AI sector surged following Tesla's earnings miss and Google's higher-than-expected spending, both of which saw sharp declines.
The dollar index steadied in the last session, trading above the $105 mark, ahead of the highly anticipated FOMC meeting minutes. Market expectations are leaning towards a more hawkish stance from the U.S. central bank due to a tight labour market. Analysts predict that the Fed is likely to implement two 25 bps rate cuts toward the end of the year, contingent on further evidence that inflation is slowing.
Oil prices experienced their steepest decline of 2024, dropping over 5%, following the release of the American Petroleum Institute (API) weekly crude data, which revealed an unexpected inventory build-up exceeding 4 million barrels. This surprise data, coupled with OPEC+'s decision to increase oil supply in the fourth quarter, exerted significant downward pressure on prices.
The U.S. equity market continued its upward trajectory, buoyed by growing optimism surrounding potential interest rate cuts by the Federal Reserve later this year, following the release of softer-than-expected nonfarm payroll data last Friday, indicating a slowdown in economic performance.