The World stock markets record their third consecutive all-time high this Thursday, May 16 and fixed income markets also rise, while hopes of interest rate cuts in the United States and other large economies extended a global bullish streak that has now lasted a month.
Investors continue to enjoy Weaker than expected inflation data in the United States on the eve and growing optimism that China is finally considering the kind of measures that could alleviate its housing crisis.
He MSCI world equity index advances For the sixth day in a row, Wall Street futures point to a higher open and the pan-European STOXX 600 looks to take Europe’s winning streak to 10 days, the longest since August 2021.
He and in enjoys further respite against the dollar, while the yield on the benchmark 10-year US Treasury bond – which determines the overall cost of borrowing – hits one-month lows on bets that the US could cut rates two times this year.
Market enthusiasm for inflation in the US
“The perspective of a relaxation of inflationary pressures (in the United States) was enough to make the market quite enthusiastic, let’s put it that way,” said Rabobank’s Elwin de Groot. He added that, “Also, until not long ago, the market was focused on the United States outperforming Europe on many fronts. But now that has almost started to reverse.”
The Chinese and Hong Kong real estate stocks also rose after learning that Beijing is studying a plan for local governments to buy millions of unsold homes across the country.
He CSI 300 real estate index and mainland Chinese property developers listed in Hong Kong gained 3.5% and 4.9%, respectively, while the yuan rose as the dollar weakened following Wednesday’s inflation data.
Also in Europe, the greenback hit multi-week lows against the euro and the pound sterling. The return of Treasury bonds also prolonged its fall, to levels not seen in six weeks. This, in turn, supported the recent recovery of the yen, despite data showing that the Japanese economy contracted more than expected.
Futures market in the US
The US stock index futures They rise slightly after the individual historical highs reached the day before by the S&P 500, the Dow Jones Industrial Average and the Nasdaq.
In the foreign exchange market, the dollar falls to 154.62 yenfrom 156.55 of the previous session.
Gold supporters were pushing the precious metal back toward record levels and oil was rising again after recovering strongly from a two-month low.
Source: Ambito
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