© Reuters. FILE PHOTO: A man walks past a stock quote at a brokerage company in Tokyo, Japan
By Carolyn Cohn
LONDON (Reuters) – Global equities hit record highs on Friday, as tech stocks on Wall Street cheered fears of lower U.S. inflation, with no inflationary pressure holding bond yields. votes near the two-week low.
Federal Reserve Chairman Jerome Powell reiterated late Thursday that inflation is not a concern, following data showing a sudden increase in the number of Americans applying for unemployment benefits. new.
MSCI’s widest world stock index has set a record high in Asian trading, even though it was down 0.1% by 0755 GMT. This index is up more than 1.5% this week.
“As long as monetary stimulus is easy, as long as fiscal policy is easy, any stock malfunction would probably only find buyers,” said Giles Coghlan, chief currency analyst at HYCM. “.
Emini futures stabilized after rising 0.42% to a record high and adding 1.03%.
100 hit its highest level in more than a year, bringing gains for the week to nearly 3%, thanks to the country’s rapid vaccine rollout. ()
German stocks fell 0.22%.
Powell signaled at an IMF event that the central bank would not be able to reduce support for the US economy, saying that while the reopening of the economy could lead to temporary higher prices, it will not constitute inflation.
Deutsche bank Analysts (DE 🙂 said these comments “bring new reassurance to investors who have started pricing in previous rate hikes thanks to some very strong economic data in recent weeks “.
Traders piled on megacap technology stocks like Apple Inc (NASDAQ :), Microsoft Corp (NASDAQ 🙂 and Amazon.com Inc (NASDAQ :), which are the main drivers of the S&P 500.
The benchmark 10-year Treasury yields close to Thursday’s two-week lows near 1.6%.
Yields rose to their highest level since January 2020 at 1,776% at the end of March when a string of strong US economic data sparked fears of soaring inflation that could force the Federal Reserve. State must raise interest rates earlier than policymakers so far.
Germany’s 10-year yield rose 2 basis points, far exceeding its 10-day low in the previous session.
The 0.2% gain was set for the worst week of the year due to falling Treasury yields. The euro fell 0.2% after hitting a two-week high in the previous session. (Graphics: Dollar set for worst week of the year, https://fingfx.thomsonreuters.com/gfx/mkt/yxmpjdobbpr/dollar0904.png)
The CBOE volatility index hit its lowest level since February 2020 at 16.55.
In Asia, Japanese equities rose 0.6% and Australian stocks hovered near a 13-month high, while South Korea’s Kospi hit an intraday high since mid-February.
However, Chinese shares fell 1.5% on the back of strong domestic inflation data raising concerns about policy tightening.
Factory prices rose at the fastest annual rate since July 2018 in March.
Oil prices fell as investors weighed on increased supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.
down 0.35% to $ 59.38 / barrel, while down 0.5% to $ 62.87 / barrel.
fell 0.5% to $ 1,747 / ounce after rising to a more than a month high of $ 1,758 on Thursday.