Global stocks traded mixed on Wednesday, with equity futures gradually rising after Federal Reserve Chairman Jerome Powell reassured the central bank believes the rise in inflation prices will be transient.
Asian stocks ended mostly higher except for a 0.6% decline for Australia
S & P / ASX 200 Index.
Australian authorities have placed new restrictions on Sydney following a Covid-19 outbreak, while New Zealand has also imposed restrictions on Wellington after an Australian tourist tested positive for the coronavirus. that of Hong Kong
Hang Seng Index
led the regional indices up with an increase of 1.8%.
Stoxx Europe 600
fell 0.4%. Data
showed that trade activity in the euro area grew at the fastest pace in 15 years in June. The Eurozone Purchasing Managers’ Flash Composite Index climbed to 59.2 from 57.1 in May, marking a 180-month high as economies continued to reopen and Covid-19 vaccines were rolled out to across the continent.
US equity futures edged up, US equity futures
Dow Jones Industrial Average
up 29 points. At Tuesdayy, the Dow industry gained 69 points, or 0.2%, the
increased by 0.5%, while the
rose 0.8%, setting a new closing record.
The markets were supported by Federal Reserve Chairman Jerome Powell, who reiterated in his testimony Tuesday to Congress that higher inflation would be transitory. This followed Monday’s comments from New York Fed Chairman John Williams, who said that with unemployment still high, interest rates would remain low for now.
Shares fell last week after the Fed unexpectedly forecast two interest rate hikes in 2023, and a regional Fed chairman hinted that the first hike could come in 2022.
“The longer-term outlook for tightening monetary policies is increasingly accepted by investors, with many still expecting the Fed to remain dovish for some time, with stimulus measures also remaining in place,” he said. said Pierre Veyret, technical analyst at ActivTrades, in a note to clients. “That said, the near-term outlook should remain bullish for equities, for a few weeks or months at least, before a shift from riskier assets to safe havens takes place.”
Investors will receive a new batch of data on Wednesday, including the first quarter current account deficit, the Markit flash indices of manufacturing and service purchasing managers for June and new home sales for May.
Bitcoin prices continued to strengthen, after falling below $ 30,000 on Tuesday, and wiping out much of the 2021 gains. Bitcoin last traded at $ 34,014, an increase of 7 , 5% in the last 24 hours. Some market techs have pointed out the need for Bitcoin to stay in control of the $ 30,000 level, or risk a much steeper drop.
Oil prices rose Wednesday ahead of Energy Information Administration inventory data. Brent crude rose nearly 1% to $ 74.76 per barrel, while U.S. crude prices rose 0.8% to $ 73.45 per barrel.
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