World stocks hit five-week peak, as dollar continues retreat

WASHINGTON, Oct. 26 (Xinhua) – Global stocks rose to a five-week high on Wednesday in volatile trading as US stocks mixed as investors weighed on disappointment. US earnings per share, hoping the Federal Reserve will slow its interest rate. Raising interest rates.

The US dollar index fell to a five-week low as the pound climbed to its highest level since Sept. 13, continuing to rise after Rishi Sunak became the UK’s prime minister.

News that the British government plans to restructure the country’s public finances for more than two weeks until November 17 has pushed up bond yields.

Wall Street is mixed. The Dow Jones Industrial Average (.DJI) was up 0.51%, the S&P 500 (.SPX) was down 0.13% and the Nasdaq Composite (.IXIC) was down 0.97% at 10:37 AM EDT (1437 GMT).

The MSCI Global Stock Index (.MIWO00000PUS) rose 0.36% to a five-week high. Europe’s Stoxx 600 (.STOXX) also hit a five-week high in volatile trading.

Google Alphabet (GOOGL.O) owner posted softer-than-expected ad sales after Tuesday’s shutdown, and Microsoft (MSFT.O) missed earnings forecasts despite company warnings. Dutch semiconductor supplier ASM (ASMI.AS) has raised concerns about a slowdown in growth. .

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Some major European banks have warned of growing risks as the economy slows after higher-than-expected earnings, helped by a boom in trading in volatile markets and interest rates. Higher. Deutsche Bank (DBKGn.DE) posted better-than-expected third-quarter earnings, and UK Barclays (BARC.L) also beat its earnings forecast.

Asian stocks rose as a sign that some investors are comforted by the perception that a turnaround in global interest rates may be approaching.

Although the Fed is widely expected to deliver another 75 basis points in November, the feeling that the Fed could then begin to ease its cycle of strong tightening has boosted sentiment in the stock market. And withdrew from the dollar rally.

“I do not want to take the optimism too far. We think it is too early for the Fed to make a point and the market is stronger, it is likely that the Fed wants to be more cautious about what it wants to create.” Andrew Sheets Morgan Stanley’s chief equity strategist said.

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The sheet also noted “further downside risk” for earnings.

Tuesday’s data showed a slowdown in rising house prices and consumer confidence, with some signs that the Fed’s strong rate hike is beginning to cool the job market.

“It feels too early to announce ‘clarity’ for the stock market – for example, the Fed could push US real rates deeper into tight territory – meaning we are considering a downturn,” Chris said. Of the dollar, this is an adjustment. ” Turner, Global Marketing President at ING.

Meanwhile, the Bank of Canada has announced a 50 percent lower-than-expected rate hike. That set its policy rate at 3.75%, a 14-year high, but the call for another 75 bases moves to counter stagnant high inflation.

MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) rose more than 1% as Japan’s Nikkei (.N225) rose to its highest level since Sept. 20.

The euro fell below $ 1 for the first time in five weeks.

In Australia, inflation hit a 32-year high last quarter as house and gas prices rose. The surprise has added pressure on the central bank to change shifts recently, although markets are skeptical of a sharp shift.

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The Australian dollar appreciated by more than 1%.

China’s yuan rebounded sharply to close a two-week high of domestic trading as traders and corporate clients struggled to break down long-term dollar positions.

Traders said market participants were cautious after major state-owned banks were spotted selling dollars on Tuesday to stabilize markets.

Investors raised their bets on the Bank of England, raising their benchmark rate by a full percentage point on November 3 after the news and put the chances of such a change at about 37% higher than before the announcement of the deferral.

Gold prices rose as the dollar and bond yields fell. Place prices rose 0.82%.

Elsewhere, oil prices rose on a weaker dollar and supply concerns. US crude rose $ 2 a barrel.

Reported by Dhara Ranasinghe; Additional report by Ankur Banerjee in Singapore; Edited by Kim Coghill and David Holmes

Our Standards: Thomson Reuters Trust Principles.

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