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Global stocks rebound as investors reassess rout: Market recap

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(Bloomberg) – A rebound in global equities continued on Thursday as bearish buyers leaned into speculation that weeks of market swings may have priced in the economic impact of the conflict in Ukraine. Oil stabilized after a sharp decline.

An MSCI Inc. gauge of Asia-Pacific stocks was on track for its biggest jump since November 2020, up more than 2%. European futures rose. U.S. contracts fluctuated after benchmarks in America and Europe posted their strongest one-day gains since 2020. Amazon.com Inc. jumped more than 10% in late U.S. trading after news broke. a $10 billion stock split and buyout plan.

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Late in the U.S., the House voted to ban Russian energy imports and passed a long-delayed $1.5 trillion spending bill that would fund the U.S. government for the remainder of the fiscal year and provide $13.6 billion in aid to Ukraine. In Asia, mining giant Rio Tinto Group said it had joined the ranks of multinationals fleeing Russia.

Searing gains in commodity markets stalled, with oil once again trading below $110 a barrel. The United Arab Emirates said it would call on the OPEC+ alliance to increase oil production faster, although the energy minister later appeared to tone down that message.

The dollar edged higher after slipping on improving risk appetite, and the Japanese yen approached a five-year low against the greenback. The 10-year Treasury yield hovered around 1.94%.

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The reversals are the latest twist in volatile markets as investors weigh the risk of an inflationary shock that could derail global growth, just as the Federal Reserve prepares for what is expected to be the first of several rate hikes next week. U.S. consumer price inflation is set to hit a new multi-decade high in data due Thursday, and while the runaway gains in commodities appear to have stalled for now, markets are still beholden to the Evolution of the War in Ukraine and Russian Sanctions.

Market sentiment picked up on Wednesday after a senior foreign policy official for Ukraine’s president said the country was ready to discuss Russia’s request for neutrality as long as it received security guarantees.

“You’re going to see more dispersion” in stocks, Erin Browne, multi-asset portfolio manager at Pacific Investment Management Co., said on Bloomberg Television. “We expect this to be a consistently higher inflation environment for the rest of 2022, what you’re starting to see is not just the first degree hit in commodities which are likely to stay higher, but you see that addressing some of the supply chain challenges that will continue to be disrupted and exacerbated due to the conflict in Ukraine.

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Meanwhile, former chief prosecutor Yoon Suk-yeol has won South Korea’s presidential election, ousting the conservative opposition to power after five years and signaling a hawkish turn in the country’s relationship with China. China and North Korea.

In cryptocurrencies, Bitcoin fell back below $40,000, after a sharp rise in digital tokens sparked by optimism about an impending U.S. crypto oversight overhaul that could bring regulatory clarity to investors. .

For more market news, follow our Markets Live blog.

Some of the major movements in the markets:

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S&P 500 futures were down 0.2% at 7 a.m. London. The index rose 2.6%, Nasdaq 100 futures fell 0.2%. The gauge rose 3.6% Japan’s Topix jumped 4% Australia’s S&P/ASX 200 index rose 1.1% China’s Shanghai Composite Index climbed 1.2% The Hang Index Seng rose 0.6% Euro Stoxx 50 futures rose 0.4%

Currencies

The Japanese yen weakened 0.2% to 116.01 to the dollar The offshore yuan was at 6.3261 to the dollar, little changed The Bloomberg Dollar Spot Index edged up 0.1% The euro edged higher slipped 0.2% to $1.1057

Obligations

The yield on 10-year Treasury bills slipped two basis points to 1.93% The yield on Australian 10-year bonds rose five basis points to 2.37%

Merchandise

West Texas Intermediate crude rose 1.5% to $110.34 a barrel Gold fell 0.5% to $1,981.55 an ounce

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