Tuesday, May 28, 2024

Global stock indices rally

Date:

Global stock indexes rose during trading today, and U.S. stocks rose on Wall Street, supported by a decline in bond yields, while European stocks also rose in early trade, led by the technology sector.

Wall Street’s major indexes opened higher as a week-long rally in Treasuries eased on fears that the Federal Reserve will keep interest rates higher for longer.

The Dow Jones industrial average was up 72.76 points, or 0.22%, at 33,076.33. The S&P 500 index was up 16.67 points, or 0.42%, at 3,998.02. 11,524.65 points.

Risk appetite

European stocks rose, supported by a rally in interest-sensitive technology stocks, as investors flocked to riskier assets after comments by a Federal Reserve official that the U.S. central bank may temporarily stop tightening monetary policy.

The Stoxx 600 index of European shares rose 0.5% in early trade, while a sub-index for the technology sector rose 1.3%.

Investor sentiment was boosted last night after Federal Reserve Bank of Atlanta President Rafael Bostic said he would like to raise interest rates “slowly and steadily” in the next phase, holding off on raising them until mid- or late summer.

The mining sector index rose 1.3% amid expectations that the easing of coronavirus-related restrictions in China would lead to a pick-up in demand following an improvement in the country’s economic conditions.

Lufthansa shares rose 4.4% after the German airline turned profitable in 2022, supported by a strong rise in demand for air travel.

Japanese profits

Japan’s Nikkei index ended at its highest level in nearly 3 months after US stocks finished higher overnight.

See also  Today is September 19, 2023 Artificial Intelligence Harvest

The index rose 1.56% to close at 27,927.47 points, its highest level since December 15 and the biggest daily gain since January 18. The index is up 1.73% this week.

The broader Topix index rose 1.25% to 2019.52, bringing its gains for the week to 1.57%.

“Gains in Japanese stocks are justified by the recovery of the Chinese economy,” said Jun Morita, general manager of research at Chibajin Asset Management. The Japanese economy will also benefit from the influx of Chinese tourists to Japan.

“But today’s gains could be more significant,” he added. Also, Wall Street was very strong last night. Investors may have been more optimistic about the prospects for a rate hike in the US.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:

Popular

More like this
Related

Cost-effective drilling: how to reduce operational expenses by smart equipment choices

Drilling costs affect the profitability and sustainability of oil...

Navigating the World of Cryptocurrencies: How to Choose the Best Crypto Wallet

In the digital age where cryptocurrencies are rapidly gaining...

Unlock the easiest way to get EU citizenship of Slovenia and Romania with Union Permits

Due to the nature of their immigration programs, Slovenia...

The Ultimate Guide to Men’s Facials in Dubai

In the bustling city of Dubai, where the sun...