Global equities hit an all-time high on Friday as investors balanced their expectations that the economic recovery will remain robust cautiously ahead of the U.S. next week. Federal Reserve meeting.
The FTSE All-World index was less than 0.1 percent but still hit a new record for the afternoon in New York, even though the global stock benchmark rose only 1 percent through June.
Wall Street’s S&P 500 blue-chip index closed the trading session at more than 0.2 percent, also reaching an all-time high, while the technology-focused Nasdaq Composite was up 0.4 percent. percent when the closing bell rang.
The momentum was strong even in the Atlantic, where the Stoxx Europe 600 closed 0.7 percent to another record – the fourth consecutive week of benchmark rise. This follows an update of growth forecasts for the eurozone by the European Central Bank on Thursday.
The London FTSE 100 index has risen by the same margin for its best weekly performance since early May.
“All the economic data continues to improve, but everyone was expecting it,” said Caroline Simmons, UK’s chief investment officer for wealth management UBS. “People are waiting now to see what happens with central banks.”
Next week’s Fed meeting will be closely followed by Vice President Randal Quarles called for discussions about a quarter of its $ 120 billion monthly bond purchases that have supported financial markets since March 2020.
“The Fed is likely to start talking about reducing asset purchases more openly in the coming months, with the view that they will actually make some declines next year,” Simmons said.
This week manifestation in the Treasuries of the United States he escaped without steam. Traders anticipated that the Fed would experience strong past inflation in the United States and respected its view that high price hikes were a temporary effect of the reopening of the industry.
U produces on the 10-year note it was slightly unchanged at 1.45 percent on Friday, although it has remained around its lowest level since early March. The equivalent yield of Bund in Germany was also stable at minus 0.27 per cent.
Thursday’s data shows the title consumer price inflation in the U.S. it rose 5 percent in the 12 months to May, the largest increase since 2008. Investors have dismissed this jump “as primarily from the normalization of pandemic prices,” the economist said by Daiwa Chris Scicluna.
Credit Suisse, however, warned in a research note of a “high level of investor satisfaction”.
“Another round of high inflation indicators should encourage central banks… To show less patience to maintain easy monetary conditions, markets may be locked rather scared,” the bank said.
The dollar rose 0.5 percent against a pair basket, while the euro weakened by the same amount against the dollar to buy $ 1,211. The pound lost 0.4 percent against the dollar at $ 1.4118.
Brent crude, the international benchmark for oil, gained 0.1 percent to $ 72.61 a barrel, its highest level since May 2019.
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