The fall in US producer price index (PPI) triggered a fresh round of buying on Wall Street and the S&P 500 has set a new three month high.
It has been another bullish run for equity markets in the US and Europe as traders are less fearful about the possibility of an extremely hawkish Federal Reserve.
The mood in equity markets is upbeat following last night’s update from the Federal Reserve. Earlier this month the US central bank hiked interest rates by 50 basis points – meeting forecasts – and last night the minutes from that meeting were released.
Traders are a little optimistic ahead of the release of the minutes from the recent Federal Reserve meeting, where rates were hiked by 0.5%.
The euro is higher again as Christine Lagarde – the European Central Bank president - said she is attentive to the exchange rate.
Lately there has been growing chatter the European Central Bank might lift interest rates in July, and this morning, Christine Lagarde dropped a big hint that rates will be lifted.
Stock markets in Europe racked up solid gains today as the bullish close in Asia helped the mood.
The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.
Markets have fallen back into their old habits as an increase in yields has sparked a sell-off in stocks. Equity markets experienced low volatility at the start of the week and that was because US bond yields cooled, but today the 10-year yield traded above 3%, which speed up the decline in equities.
Prices may be delayed by 5 seconds. Prices above are subject to our website terms and conditions. Prices are indicative only
© 2022 Equiti, All Rights Reserved