Started by PocketOption, Feb 15, 2023, 11:43 am
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European stocks rose, and Wall Street stock futures were little changed on U.S. inflation data after a drop in expectations for wage growth dampened jitters over rising prices.
Gains in E.U. telecoms and travel and leisure stocks helped lift the Stoxx 600 index by 0.44%. Shares in Vodafone Group Plc rose after Liberty Global Plc said it had bought a 4.92% stake in the rival British telecoms group. TUI AG rose after the world’s biggest tour operator said summer bookings are ahead of pre-pandemic figures.
Futures for the S&P 500 and the tech-heavy Nasdaq 100 were flat after the major indexes added more than 1.5% on Monday. A survey showed Americans sharply cut their expectations for rising household incomes in the wake of tighter monetary policy. Palantir Technologies Inc. rose by 20.4% in premarket trading after the data analytics company said 2023 would be its first profitable year.
Whether the Fed will view Tuesday’s inflation numbers as “persuasive enough” evidence of disinflation to prompt talk of a policy pause remains to be seen. Still, the inflation data has certainly changed, with the cycle’s worst hindsight on the spectrum.
The greenback’s strength index fell, while the 10-year U.S. Treasury yield was little changed. The pound rose after data showed U.K. wages rose faster than expected by the end of 2022, adding pressure on the Bank of England to raise another interest rate next month.
U.S. stock futures held off fresh gains on Tuesday as traders eyed key inflation data.
On Monday, the Dow Jones Industrial Average was up 377 points, or 1.12%, at 34,246, the S&P 500 was up 47 points, or 1.15%, at 4,136 and the Nasdaq Composite was up 174 points, or 1.47%. By %, up to 11893.
The Nasdaq Composite is up 13.7% in 2023 but remains 25.92% off the all-time high set in November 2021.
Economists expect the annual CPI inflation rate to ease from 6.52% in December to 6.22% last month and the core measure, which strips out particularly volatile items such as food and energy, to fall from 5.72% to 5.42%. Figures are expected to rise 0.41% for the month, compared to December’s minus 0.11%, with the core unchanged at 0.31%.
Disinflation in recent months has encouraged investors to hope that the Federal Reserve will soon stop raising interest rates, allowing the economy to avoid a sharp contraction and thereby supporting corporate profits. That narrative has helped propel the S&P 500 up 7.81% this year.
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