European stocks rose Thursday after Wall Street closed its previous session, as traders weighed heavily on the US economy and minutes of a recent Federal Reserve meeting.
The Stoxx Europe 600 gauge rose 0.2 percent during the day. Wednesday’s regional index jumped after closing for the past four trading days, down 1.3 percent on Tuesday. Various countries in the bloc last week launched new methods of coronavirus in response to a growing number of cases.
The German Dax index rose 0.1%, while the French CAC 40 rose 0.3%. London’s FTSE 100 index gained 0.1 percent.
Following the re-imposition of epidemics in countries including Germany and the Netherlands, Goldman Sachs on Wednesday slightly reduced its Euro growth rates for the fourth quarter this year by 0.2 percent to 0.8 percent. The bank lowered its forecast for the first quarter of 2022 by 0.3 percent to 0.6 percent.
“The decline is driven by the prospect of a new weakening of Covid-related activities, such as hospitality, arts and entertainment,” the bank said, adding that the potential for inflation could be small. “[We] look for bigger growth in Q2, where restrictions have been lifted, “he added.
In the US, the blue-chip S&P 500 index ended the previous day to 0.2 percent, while the Nasdaq Composite gauge index closed 0.4 percent. The move follows new developments that show that US weekly unemployment rates have plummeted since 1969.
Some data suggest that a inflation rate closely followed by the Fed recording its biggest annual jump in October since the 1990s. Big spending on inflation showed an increase of 4.1 percent, in line with expectations of economists but from 3.7 percent in September.
Meanwhile, minutes of the Fed policy meeting in November show that officials have “insisted that staying flexible” is essential as the $ 120bn monthly procurement promotion program is being phased out.
Officials, who are expected to start raising prices once such a decline subsides, said the rise in prices could “take longer to subside than previously observed”.
The U.S. stock market and the Treasury market will close on Thursday during the Thanksgiving holiday.
On Wednesday, yields for the two-year U.S. Treasury note, which are affected by fiscal policy fluctuations, rose 0.03 percent to 0.64 percent. Bond yields move irresponsibly towards prices.
Tatjana Greil Castro, head of public markets at Muzinich & Co, said the Thanksgiving holiday is “an excuse for all markets too late” and that “everything we saw yesterday cannot be explained until tomorrow, therefore. We should see very little in terms of transportation”.
Responding to rising electricity and food prices, he said inflation would become “sticky” over time.
In European debt markets, yields over the 10-year German Bund fell nearly 0.01 percent to down 0.231 percent on Thursday. The minutes of the most recent European Central Bank meeting are due to take place at noon.
Despite the Fed, the ECB and the Bank of England starting to raise prices, South Korea on Wednesday increased interest rates again in three months, following the Reserve Bank of New Zealand’s announcement earlier in the week that it would strengthen. financial plan.
In Asia, Hong Kong’s Hang Seng share index rose 0.2 percent. China’s CSI 300 index fell 0.4%.
In currency, the dollar index fell by 0.15%. The euro, which on Wednesday hit the dollar hard since June 2020, rose more than $ 1.12.
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