Global markets update: US stocks rise as major banks clear Fed’s stress test
US stocks rose on Thursday as banks rallied after Federal Reserve’s annual stress test showed that the biggest US banks have enough capital to weather a severe economic slump.
The S&P 500 gained 20.18 points, or 0.46%, at 4,397.04 points. The Dow Jones Industrial Average rose 266.88 points, or 0.79%, at 34,119.54. The Nasdaq Composite added 0.25 points at 13,591.33.
Latest data on first-time jobless claims, which dipped to 239,000 last week, pointed to continued strength in the US economy.
Fed chief Jerome Powell on Thursday at a banking event in Madrid reiterated his warning that two more rate hikes were probably necessary by the end of the year as there was still “a long way to go” to bring inflation down to the Fed’s 2% target.
Currencies
The US dollar rose to 144.90 Japanese yen from 144.32. The euro fell to $1.0868 from $1.0922.
Bond market
The 10-year treasury yield rose to 3.83% from 3.71%. The two-year treasury yield up to 4.87% from 4.71% late Wednesday.
Energy prices
Brent crude for August delivery rose 31 cents to $74.34 a barrel on Thursday. US crude oil benchmark for August delivery rose 30 cents to $69.86 a barrel.
Natural gas for August delivery rose 3 cents to $2.70 per 1,000 cubic feet.
Canada
Canada stocks rose on Thursday, with the Toronto Stock Exchange’s S&P/TSX composite index closing up 94.32 points, or 0.5%, at 19,913.17.
Europe
European shares rose on Thursday, with the pan-European STOXX 600 index closing 0.1% higher.
Britain’s FTSE 100 fell 0.4% at 7,471.69. Germany’s DAX ended flat at 15,946.72. France’s CAC 40 rose 0.4% at 7,312.73.
Sweden’s central bank on Thursday hiked its key interest rate to 3.75%, the highest level in nearly 15 years.
Swedish retailer H&M rallied on stronger-than-expected quarterly profit. Its shares climbed 18.2% to their highest in more than a year and topped Stockholm’s equity index.
French carmaker Renault surged 5% after it raised its full-year financial outlook.
Chipmaker Aixtron rose 6% after Citigroup initiated coverage on the stock with a “buy” rating.
Asia
In Asia, stock markets were mixed on Thursday.
Hong Kong’s Hang Seng index fell 1.2% at 18,934.36. China’s Shanghai Composite lost 0.2% at 3,182.38.
Japan’s Nikkei 225 rose 0.1% at 33,234.14.
Australia’s S&P/ASX 200 index fell 1.6 points at 7,194.9. In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% at 11,808.12.
Bullion
Gold for August delivery rose $4.50 to $1,917.90 an ounce. Silver for September delivery fell 18 cents to $22.80 an ounce.
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Updated: 30 Jun 2023, 02:15 AM IST
