Stock Market Today: Global equities are mainly higher, buoyed by a Wall Street rally that was one of the greatest days of the year following a surprise strong inflation data.
Global shares equities surged higher on Wednesday, boosted by a wide Wall Street rally following an upbeat U.S. inflation report that encouraged optimism for the Federal Reserve to stop raising interest rates. The CAC 40 in France climbed 0.5% in early trading to 7,221.25. The DAX in Germany rose 0.2% to 15,644.95, while the FTSE 100 in the United Kingdom rose 1.0% to 7,515.58. The Dow Jones Industrial Average futures were up 0.2%, while the S&P 500 futures were up 0.3%.
The Nikkei 225 index in Tokyo surged 2.5% to 33,519.70, as investors appeared to dismiss news that Japan’s economy fell at a worse-than-expected 2.1% annual rate in July-September. In quarterly terms, it shrank by 0.5%. According to Capital Economics’ Marcel Thieliant, the world’s third largest economy is battling with deteriorating private demand from consumers and businesses, slow demand for Japan’s exports, and sluggish wage growth, which will continue to drag on consumer spending, the key driver of the economy.
“Accordingly, we expect GDP growth to slow from 1.7% this year to 0.5% in 2024,” he wrote in a commentary. The Hang Seng in Hong Kong climbed 3.9% to 18,079.00, while the Shanghai Composite gained 0.6% to 3,072.83 after October GDP reports revealed the Chinese economy is holding up despite some signs of slowing.
Although factory output and retail sales increased, property sales plummeted even further. Lending, exports, and inflation have all been lower than anticipated. The S&P/ASX 200 index in Australia rose 1.4% to 7,105.90. The Kospi in South Korea rose 2.2% to 2,486.67.
The S&P 500 gained 1.9% on Tuesday, its highest day since April. The Dow Jones Industrial Average increased by 1.4%, while the Nasdaq Composite increased by 2.4%. The rise came after a highly anticipated U.S. inflation report revealed that overall price increases slowed last month, increasing the likelihood that the Federal Reserve will stop further market-shaking interest rate hikes.
The Federal Reserve has raised its key interest rate to its highest level since 2001, from near zero early last year, with the aim of bringing inflation back down to 2%. According to Tim Waterer, chief market analyst at Kohle Capital Markets, markets were already looking ahead to other U.S. data due in the coming sessions, such as the producer price index and retail sales figures.
“Asian equity markets have followed Wall Street’s upbeat tone.” “However, it will be PPI and retail sales data that will determine whether the bullish mood on equity markets can be sustained,” he stated in a report.
On the New York Mercantile Exchange, benchmark US crude rose 13 cents to $78.39 a barrel in electronic trade. On Tuesday, it remained unaltered. Brent crude, the worldwide benchmark, rose 18 cents to $82.65 a barrel. The US dollar increased to 150.36 Japanese yen in currency trade, roughly unchanged from 150.37 yen late Tuesday. The euro is now worth $1.0848, down from $1.0881.
Frequently asked questions
What happens to stock market when inflation rises?
As a result, when the inflation rate rises, value equities tend to outperform. Growth stocks, on the other hand, have modest cash flows. As a result, they have a negative relationship with the rate of inflation. When inflation rates rise, the market value of these stocks falls.
What are Global Shares?
Global shares are similar to regular shares in that investors can trade them in numerous currencies on stock exchanges throughout the world.
Is Global Shares a good investment?
You can gain exposure to capital growth and income yields from some of the world’s most successful firms by investing in global shares. However, like with any other growth asset, an allocation to global shares carries the risk of short-term volatility and capital loss.
Who is the CEO of Global Shares?
Tim Houstoun
Tim has vast experience in strategic management and nurturing firms to success. He is very numerate and has a reputation as a strategist and imaginative thinker.
Click here, to check out the latest post on Instagram.
Also Read: IREDA IPO: The Subscription Period Begins On November 21 And Lasts Three Days, With The Price Band Established At Rs 30-32 Per Share
image source: google
