Global markets update: US stocks advance after modest rise in inflation
US stocks advanced on Tuesday after modest rise in inflation in May.
The S&P 500 gained 0.69% to end at 4,369.06. The Dow Jones Industrial Average rose 0.43% to 34,212.25 points. The Nasdaq gained 0.83% to 13,573.32 points.
A US labor department report showed that the consumer price index (CPI) rose 0.1% in May following a 0.4% jump in April. Core inflation was unchanged at 0.4%.
On a year-on-year basis, headline inflation increased by a less-than-estimated 4.0%.
Shares of US banks inched up on Tuesday after the release of the inflation data.
The S&P 500 Banks Index rose 1.14%.
Morgan Stanley, JPMorgan Chase, Citigroup. Goldman Sachs, Wells Fargo and Bank of America rose between 1% and 2%.
Investors’ hopes are high that the Federal Reserve will pause its interest rate hike.
The US Fed has increased interest rates 10 straight times in efforts to tame inflation.
The yield on 10-year treasuries rose 9 basis points to 3.82%.
West Texas Intermediate crude rose 3% to $69.15 a barrel.
Gold futures fell 0.7% to $1,956.60 an ounce.
Canada
Canada stocks rose on Tuesday as higher oil prices boosted energy shares.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 69.09 points, or 0.35%, at 19,990.40.
Europe
European shares edged higher on Tuesday, boosted by technology and mining stocks.
The pan-European STOXX 600 index rose 0.3%.
Britain’s FTSE 100 gained 0.3% at 7,594.78. Germany’s Frankfurt DAX up 0.8% at 16,230.68. France’s CAC 40 added 0.6% at 7,290.80.
The European Central Bank will hold its policy meeting on Thursday, where it is expected to hike rates by another 25 basis points to tame inflation.
Asia
In Asia, Hong Kong’s Hang Seng Index added 0.6% at 19,521.42. China’s Shanghai Composite up 0.2% at 3,233.67.
Japan’s Nikkei 225 rose 1.8% at 33,018.65.
Australia’s S&P/ASX 200 index finished 0.2% higher at 7,138.9. New Zealand’s benchmark S&P/NZX 50 index advanced 0.3% to 11,652.84.
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Updated: 14 Jun 2023, 02:21 AM IST
