In an interview on Thursday, Federal Reserve Chairman Jerome Powell said the battle to rein in inflation “will include some pain” and reiterated his expectation of half a percentage point interest rate hikes at each of the next two policy meetings, saying time that promised that “we are prepared to do more”.
The war in Ukraine has compounded supply chain disruptions and inflationary pressures already in place after more than two years of the COVID-19 pandemic, but stocks enjoyed a rebound on Friday.
“There’s a lot of negative sentiment out there, we’re looking at a 40% chance of a recession,” said Patrick Spencer of investment bank Baird. “Many fund managers have cut their allocations to equities and increased cash, although we believe this is more of a correction than a bear market.”
S&P futures were up 1.09% after the S&P 500 lost 0.13% overnight, although the index continues to point to a sixth straight week of declines.
Shares of Twitter fell 17.7% to $37.10 in pre-market trading after Elon Musk called off his plans to buy the company, saying he is awaiting details on the calculations. showing that spam and fake accounts account for less than 5% of users.
MSCI’s global stock index gained 0.34% after hitting its lowest since November 2020 on Thursday, although it was headed for a weekly decline of 4%, its sixth straight week down. European papers improved 1.44% and the British FTSE 100, 1.64%.
The dollar was stable at 104.77 against a basket of currencies, near 20-year highs hit the day before on safe-haven demand. Against the yen, it was up 0.47% at 128.83, while the euro was flat at $1.038, above Thursday’s five-year low.
Bitcoin also advanced, topping $30,000 after the collapse of so-called stablecoin TerraUSD took it to a 16-month low of around $25,400 on Thursday.
The upward movements of the stock markets were reflected in US Treasury bonds. The yield of the referential 10-year notes rose to 2.8985% from 2.817% the day before and that of the two-year papers operated at 2.582% from 2.522%.
MSCI’s broader index of Asia-Pacific shares excluding Japan improved 1.6% from a 22-month closing low on Thursday. Japan’s Nikkei stock index advanced 2.64%.
In China, the CSI300 index gained 0.75% and Hong Kong’s Hang Seng gained 2.68%, buoyed by comments from Shanghai authorities that the city may start to ease some tough COVID restrictions this year. month.
In commodities, crude oil prices rose on the session but headed for their first weekly loss in three weeks. Spot gold fell 0.3%, pressured by a stronger dollar, to a three-month low of $1,806.49 an ounce.
By Carolyn Cohn of Reuters news agency
Source: Ambito
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