London — Friday’s European equities renewed as investors were wary of rising yields as the dollar hit a 16-month high as shocks from unexpectedly strong US inflation data earlier this week eased. I put a high price.
The STOXX index of 600 companies rose 0.09%, enough to hit a record high for the second straight day. The CAC 40 France High Equity Index in Paris also hit a new high.
Emotions were backed by strong earnings from Cartier-owned Richemont and Deutsche Telekom, but the British-Swedish pharmaceutical company AstraZeneca was depressed as it missed profits.
The MSCI All Country stock index rose 0.12% to 752.94 points and remains stable after falling Wednesday, with data showing that US inflation was the highest in 30 years. The index is just 6 points below Tuesday’s record high.
The US bond market will reopen on Friday after closing for Veterans Day on Thursday.
Mike Hewson, Chief Market Analyst at CMC Markets, said:
“In the direction, the lines with the least resistance are falling bond prices and rising yields, and the stock market doesn’t seem to care much.”
Global stocks fell the most in more than a month on Wednesday, based on data showing that the US consumer price index rose 6.2% year-on-year in October, the strongest rise since November 1990. Was recorded.
Bond yields rose on Friday, with 10-year Treasury yields at 1.572%.
“Inflation is clearly a notable risk, but stock prices plunge only if the Federal Reserve turns out to be completely wrong in its valuation and is forced to raise interest rates rapidly. Norihiro Fujito, Chief Investment Strategist at Mitsubishi UFJ Morgan Stanley Securities, said:
Inflation data suggests that the current wave of price spikes due to chronic global supply constraints could be more sustainable than many expected, but many Investors still believe that inflationary pressures will eventually ease.
“If we survive the peak demand shopping season during the New Year holidays, inflation could subside,” said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
In the currency market, the dollar remained strong after strong US inflation on Wednesday fueled expectations that the Fed would tighten monetary policy faster than previously thought.
The dollar’s index against the other six currencies was slightly stronger at 95.160 for the third straight day, reaching its highest level since July 2020.
The yen has softened to $ 114.02, close to its four-year low last month, but commodity currencies such as the Australian and Canadian dollars are lagging behind.
Oil prices fell after OPEC lowered its 2021 oil demand forecast to a high level as markets tackled the appreciation of the US dollar and fears of rising inflation in the United States.
Brent crude oil futures fell 0.66% to $ 82.21 a barrel, while West Texas Intermediate (WTI) futures fell 1.12% to $ 80.66 a barrel.
Gold prices fell below Wednesday’s five-month highs to $ 1,849 per ounce, down 0.6% that day.
The Asian market share is generally stable, and the Nikkei Stock Average in Japan rose 1.13%, supported by strong earnings. MSCI’s widest non-Japanese Asia-Pacific stocks rose 0.62%, while mainland China stocks were weak and the CSI 300 index fell 0.2%.