Global markets update: US stocks rise on hopes of pause in Fed rate hikes, debt deal approval
S&P 500 gains 0.99%, Dow Jones Industrial Average up 0.47%, Nasdaq Composite adds 1.28%
US stocks rose on Thursday on hopes that the Federal Reserve may pause interest rate hikes and on approval to debt deal.
The S&P 500 gained 41.26 points, or 0.99%, at 4,221.09. The Dow Jones Industrial Average rose 154.09 points, or 0.47%, at 33,062.36. The Nasdaq Composite added 165.70 points, or 1.28%, at 13,100.98.
On Wednesday, the House of Representatives approved the debt limit deal.
A report on Thursday showed that fewer workers applied for jobless benefits last week than expected, while another suggested employers increased their payrolls last month by more than forecast.
A report from the Institute for Supply Management said manufacturing shrank for a seventh straight month in May. Industrial production is getting affected due to higher interest rates.
The yield on 10-year treasury fell to 3.59% from 3.65% late Wednesday. The 2-year treasury yield fell to 4.32% from 4.40%.
Currencies
The US dollar fell to 138.86 Japanese yen from 139.32. The euro rose to $1.0762 from $1.0673.
Europe
European stocks rebounded on Thursday on easing inflation data and US debt deal optimism.
The pan-European STOXX 600 index closed 0.8% higher.
Britain’s FTSE 100 rose 0.6% at 7,490.27. In France, CAC 40 up 0.6% at 7,137.43. Germany’s DAX surged 1.2% at 15,853.66.
In euro zone, both core and headline inflation eased in May.
Latest inflation data has sparked a debate on the need for further interest rate hikes.
Asia
In Asia, stock markets were mixed on Thursday.
Hong Kong’s Hang Seng index fell 0.1% at 18,216.91. In China, Shanghai Composite was flat.
Japan’s Nikkei 225 gained 0.8% at 31,148.01.
Australia’s S&P/ASX 200 index rose 0.3% at 7,110.8. New Zealand's benchmark S&P/NZX 50 index added 0.9% at 11,916.13.
Markets in South Korea, Taiwan, Philippines and Thailand slipped.
Energy prices
Brent crude for August delivery rose $1.68 to $74.28 a barrel on Thursday.
US crude oil benchmark for July delivery rose $2.01 to $70.10 a barrel.
Natural gas for July delivery fell 11 cents to $2.16 per 1,000 cubic feet.
Bullion
Gold for August delivery rose $13.40 to $1,995.50 an ounce. Silver for July delivery rose 40 cents to $23.99 an ounce.
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