US stock indices rose, on Friday; As indicators of falling commodity prices contributed to calming expectations regarding how the US Central Bank would raise interest rates to curb inflation.
The Dow Jones Industrial Average rose more than 800 points on Friday, rebounding from its bear market lows last week, capping its first weekly advance since May.
The Dow rose 823.32 points, or 2.68%, to 31,500.68, with gains accelerating in the last hour of trading. The Standard & Poor’s 500 Index rose 3.06% to 3,911.74. The Nasdaq Composite Index also rose 3.34% to 11,607.62.
The major indices closed the week with a big comeback for stocks. The S&P 500 is up regarding 6.5% for the week, while the Nasdaq is up 7.5%. The Dow is 5.4% higher. The moves came following the S&P’s worst weekly decline since 2020. Last week, the broader market index closed down 5.8% for the week. Friday’s survey showed that US consumer confidence fell to a record low in June, but Americans saw a marginal improvement in inflation expectations. Data published last Thursday indicated a slowdown in US business activity in June. A sharp drop in commodity prices this week helped ease inflation fears. The Refinitiv/Commodity Index, which measures prices for energy, agriculture, metals and other commodities, fell to its lowest level in nearly two months, Thursday, following hitting a multi-year high earlier in June.
European
In terms of European markets, the “Stoxx 600” index rose by 2.8% to 3,533.17 points, the British “FTSE 100” index rose 2.7% to 7208.81 points, and the French “CAC” index rose by 3.2% to 6073.35 points, while the “ The German DAX increased by 0.1% to close at 13,118.13 points. On Friday, European markets closed significantly higher, ending a volatile week, and investors around the world are still assessing their concerns regarding inflation and the possibility of an economic recession.
The pan-European Stoxx 600 index closed up 2.6%, its best day in more than three months, with technology stocks adding 3.8% to lead the gains; Where all its sectors ended up being in the positive area.
With regard to the movement of individual stock prices, the British defense company “Ultra Electronics”, listed in London, jumped by more than 12%, following the British government went ahead with the process of signing its acquisition of its competitor, Cobham.
Finnish oil refiner and marketing company Neste fell at the bottom of the European blue-chip index by more than 7%.
Last week, central banks had taken strong steps to rein in inflation, and investors are now hoping to control the high consumer price, especially following commodity prices – particularly oil and economic output – fell sharply in recent days, and energy and food were the main drivers of inflation across the world. around the world.
Yet this hawkish policy course has raised fears of a recession, which US Federal Reserve Chairman Jerome Powell told Congress on Wednesday as a “possibility”; Where he stressed that the Central Bank is strongly committed to reducing inflation.
Weaker-than-expected euro zone business data on Thursday added to fears that the bloc might be heading for a recession, sending European shares to a new low in 2022.
On the data front on that continent, UK retail sales fell 0.5% m/m in May (slightly less than -0.7% that economists had expected in a Archyde.com poll), while the revised monthly rise in sales in April fell sharply. Nissan from 1.4% to 0.4%
Consumer confidence in the United Kingdom has fallen to its lowest level since records began, new data from research firm GfK revealed on Friday, as the country faces a 40-year high inflation rate, slowing growth and a deepening cost-of-living crisis for families.
The IFO Institute’s business climate index for Germany fell to 92.3 in June from 93.0 in May, while business conditions and expectations also declined slightly, and final data on Friday showed that the Spanish economy expanded by 0.2% in the first quarter of the year. 2022, slowing from a growth rate of 2.2% in the fourth quarter of 2021. (Agencies)
Japanese
Japanese stocks rose, on Friday, with the technology sector leading the gains following large gains on Wall Street in the evening, and sentiment was supported by the Bank of Japan’s accommodative monetary policies.
The Nikkei index rose 1.23% to 2,6419.97 points at the close. The index achieved a weekly increase of 2.04%, but it has fallen since the beginning of this month by 2.89%.
The broader Topix index increased 0.81% to 1866.72 points. And recorded 1.68% weekly increase.