Markets: US stocks rise as China lifts sentiment | Financial Markets News


Both the S&P 500 and Nasdaq 100 climbed, shrugging off modest losses on Wall Street on Thursday.

By Bloomberg

US stocks rose in early trading as China’s latest measure to bolster its economy injected a note of optimism at the end of another volatile week for global markets.

Both the S&P 500 and Nasdaq 100 rose, shrugging off modest losses on Wall Street on Thursday. Traders in the US will be bracing for more volatility later Friday due to the monthly expiration of options tied to equities and exchange-traded funds, which often stir market swings.

In a week marked by buy-the-dip, sell-the-rally price action, sentiment got a boost on Friday after Chinese lenders lowered the five-year loan prime rate by a record amount in an effort to boost mortgages and loans amid a property slump and Covid lockdowns. Despite Friday’s gains, the S&P 500 is still headed for its seventh weekly decline that would mark the longest losing streak in more than two decades.

Treasuries were steady, and the dollar was little changed. Oil hovered around $112 a barrel.

Global stock gauge posting worst stretch of weekly declines on record

Rebounds in risk sentiment have tended to fizzle this year as investors grapple with concerns about an economic downturn, in part as the Federal Reserve hikes interest rates to quell price pressures. Global shares are on course for an historic seventh week of declines.

The Stoxx Europe 600 erased the week’s losses. Travel stocks and carmakers led the advance, rebounding after two days of declines. The UK’s stock benchmark outperformed and gilts edged lower after a surprise increase in April retail sales overshadowed a decline in consumer confidence to the lowest level in at least 48 years.

In the latest developments over Russia’s war in Ukraine, the Senate passed a more than $40 billion Ukraine aid package, sending the bill to President Joe Biden for his signature. Meanwhile, the Group of Seven industrialized nations will agree on more than 18 billion euros ($19 billion) in aid for Ukraine, according to German Finance Minister Christian Lindner.

What damage will be done to the US economy and global markets before the Fed changes tack and eases policy again? The “Fed Put” is the theme of this week’s MLIV Pulse survey.

Some of the main moves in markets:

Stocks

  • The S&P 500 rose 0.8% as of 9:30 a.m. New York time
  • The Nasdaq 100 rose 1.2%
  • The Dow Jones Industrial Average rose 0.5%
  • The Stoxx Europe 600 rose 1.5%
  • The MSCI World index rose 1.1%

Currencies

  • The Bloomberg Dollar Spot Index was little changed
  • The euro fell 0.2% to $1.0563
  • The British pound rose 0.2% to $1.2487
  • The Japanese yen fell 0.2% to 128.01 per dollar

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 2.86%
  • Germany’s 10-year yield advanced two basis points to 0.97%
  • Britain’s 10-year yield advanced six basis points to 1.92%

Commodities

  • West Texas Intermediate crude was little changed
  • Gold futures were little changed

–With assistance from April Ma, Tassia Sipahutar, Michael Msika, Brett Miller and Sunil Jagtiani.



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