Global markets update: US stocks rise on hopes of pause in Fed rate hikes, debt deal approval
US stocks rose on Thursday on hopes that the Federal Reserve may pause interest rate hikes and on approval to debt deal.
The S&P 500 gained 41.26 points, or 0.99%, at 4,221.09. The Dow Jones Industrial Average rose 154.09 points, or 0.47%, at 33,062.36. The Nasdaq Composite added 165.70 points, or 1.28%, at 13,100.98.
On Wednesday, the House of Representatives approved the debt limit deal.
A report on Thursday showed that fewer workers applied for jobless benefits last week than expected, while another suggested employers increased their payrolls last month by more than forecast.
A report from the Institute for Supply Management said manufacturing shrank for a seventh straight month in May. Industrial production is getting affected due to higher interest rates.
The yield on 10-year treasury fell to 3.59% from 3.65% late Wednesday. The 2-year treasury yield fell to 4.32% from 4.40%.
Currencies
The US dollar fell to 138.86 Japanese yen from 139.32. The euro rose to $1.0762 from $1.0673.
Europe
European stocks rebounded on Thursday on easing inflation data and US debt deal optimism.
The pan-European STOXX 600 index closed 0.8% higher.
Britain’s FTSE 100 rose 0.6% at 7,490.27. In France, CAC 40 up 0.6% at 7,137.43. Germany’s DAX surged 1.2% at 15,853.66.
In euro zone, both core and headline inflation eased in May.
Latest inflation data has sparked a debate on the need for further interest rate hikes.
Asia
In Asia, stock markets were mixed on Thursday.
Hong Kong’s Hang Seng index fell 0.1% at 18,216.91. In China, Shanghai Composite was flat.
Japan’s Nikkei 225 gained 0.8% at 31,148.01.
Australia’s S&P/ASX 200 index rose 0.3% at 7,110.8. New Zealand’s benchmark S&P/NZX 50 index added 0.9% at 11,916.13.
Markets in South Korea, Taiwan, Philippines and Thailand slipped.
Energy prices
Brent crude for August delivery rose $1.68 to $74.28 a barrel on Thursday.
US crude oil benchmark for July delivery rose $2.01 to $70.10 a barrel.
Natural gas for July delivery fell 11 cents to $2.16 per 1,000 cubic feet.
Bullion
Gold for August delivery rose $13.40 to $1,995.50 an ounce. Silver for July delivery rose 40 cents to $23.99 an ounce.
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Updated: 02 Jun 2023, 02:36 AM IST
