US stocks regain memory of highs… and Dow Jones adds 340 points
With Atlanta Federal Reserve Chairman Rafael Bostic confirming his preference to raise US interest rates by only a quarter of a percentage point at this month’s meeting, US stocks erased their losses, and the Dow Jones index added 341 points, representing more than 1% of its value, while adding the S&P indices. 500 and the Nasdaq regarding three-quarters of a percentage point, following spending most of the day in the red.
During Thursday’s trading, fears of the Federal Reserve (the US central bank) raising interest rates to levels that exceeded previous expectations pressured the bond market, bringing the benchmark 10-year US Treasury yield to nearly 4.10% for the first time since November, before it fell. A little bit with the statements of the bank official.
Also, the yield of the two-year bonds reached 4.90%, which is its highest level in more than ten years.
Data released Thursday morning showed an increase in labor costs and a drop in jobless claims, which analysts took as confirmation that the Federal Reserve would raise the benchmark interest rate by another 0.25 percentage point later this month.
The average interest rate on 30-year fixed-prime mortgages jumped Thursday, crossing 7% once more, to 7.1%, according to Mortgage News Daily.
Growing fears over the past two weeks have caused a continuation inflation The high rate, and the Fed’s necessity to maintain high interest rates for extended periods, led to a rise in US Treasury bond yields once more, including ten-year bonds, the most influential in determining the rate applied to mortgage loans.
and elevation European stocksThursday, supported by stocks of consumer goods and energy companies, but data showed that inflation in Euro-zone Still high, fears of adoption were reinforced European Central Bank a greater increase of ainterest rates.
The pan-European STOXX 600 pared back early losses and closed 0.5% higher.
Oil prices rose on Thursday, supported by indications of a strong economic recovery in China, the largest importer of crude in the world, and the easing of fears of higher US interest rates than expected.
Brent crude futures rose 44 cents, or 0.5%, to reach $84.75 a barrel, while US West Texas crude futures rose 47 cents, or 0.6%, to reach $78.16 a barrel upon settlement.
Data on Wednesday showed China’s manufacturing activity grew in February at the fastest pace in more than a decade, adding to signs that the world’s second-largest economy is rebounding following tough anti-COVID-19 restrictions were lifted.
Archyde.com said that China’s seaborne imports of Russian oil are expected to reach a record high this month, with refineries benefiting from lower prices.
