Global markets update: US stocks edge higher after producer inflation data
US stocks edged higher on Thursday, as data showed the annual increase in US producer inflation was the smallest in nearly three years.
In June, the producer price index climbed 0.1%. That was the smallest year-on-year gain since August 2020 and followed a 0.9% increase in May.
The S&P 500 gained 37.73 points, or 0.84%, at 4,509.89 points. The Nasdaq Composite rose 219.35 points, or 1.58%, at 14,138.31. The Dow Jones Industrial Average added 44.48 points, or 0.13%, at 34,391.91.
Chip stocks climbed, with Nvidia jumping 4.73% to a record high at $459.77.
A separate report from the US showed initial claims for state jobless benefits dropped 12,000 to a seasonally adjusted 237,000 for the week ended July 8, but overall the labor market remains tight.
The 10-year treasury yield fell to 3.76% from 3.86% late Wednesday. The 2-year treasury yield fell to 4.63% from 4.75%.
Currencies
The US dollar fell to 138.33 Japanese yen from 140.46. The euro rose to $1.1137 from $1.1000.
Canada
Canada stocks rose on Thursday, led by gains in technology and financial shares.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 206.87 points, or 1%, at 20,277.64.
Europe
European shares ended higher on Thursday, led by technology stocks.
The pan-European STOXX 600 index ended 0.6% higher.
Britain’s FTSE 100 gained 0.3% at 7,440.21. Germany’s DAX added 0.7% at 16,141.03. France’s CAC 40 added 0.5% at 7,369.80.
Among the sectoral gainers, technology stocks jumped 1.7%. IT provider Softcat advanced 5.3% after Citi raised its stock rating to “buy”.
Miners rose 1.7%, as commodity prices increased on a weaker dollar.
Britain’s economy shrank less than expected in May.
Swatch shares rose 6.9% after the watchmaker reported record growth in the first half of the year.
Asia
Asian equities advanced on Thursday.
Hong Kong’s Hang Seng index climbed 2.6% at 19,350.62. China’s Shanghai Composite added 1.3% at 3,236.48.
Japan’s Nikkei 225 rose 1.5% at 32,419.33.
Australia’s S&P/ASX 200 index rose 1.6% to close at 7,246.9 points. New Zealand’s benchmark S&P/NZX 50 index advanced 0.9% to 12,013.43.
Energy prices
US crude oil benchmark for August delivery rose 92 cents to $75.75 a barrel on Wednesday. Brent crude for September delivery rose 71 cents to $80.11 a barrel.
Natural gas for August delivery fell 10 cents to $2.63 per 1,000 cubic feet.
Bullion
Gold for August delivery rose $24.60 to $1,961.70 an ounce. Silver for September delivery rose $1.03 to $24.31 an ounce.
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Updated: 14 Jul 2023, 02:05 AM IST
