Stock markets extend recovery, dollar at multi-year highs

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Stock markets rose on Thursday, extending the healing of bargains after steep losses earlier in the week.

In currencies, the dollar traded at near 20-year highs against the yen and the best level in more than 5 years against the euro as the Federal Reserve aggressively raises US interest rates.

Trading is volatile across prime property as investors continue to be on over-alert to various crises, including the conflict in Ukraine, soaring inflation, improving debt loads, and more. interest and Chinese Covid lockdowns.

National Australia Bank’s Rodrigo Catril said “risky assets in general are still having to deal with the consequences of what appears to be increasingly aggressive policy tightening by many central banks.”

He added that “China’s zero Covid policy remains in place and the prospect of a protracted conflict between Russia and Ukraine does not bode well for energy prices and Europe’s energy supply. specifically”.

The current earnings season has meanwhile seen a mixed bag of results that have weighed on tech companies, although forecasts from Facebook’s parent company Meta were encouraging on Wednesday, which analysts said could bring some relief to the sector.

Investors were also encouraged by a report by China’s state broadcaster CCTV that officials had promised more policies to boost employment in the country.

Unemployment in China – the world’s second largest economy after the United States – has recently surged on new Covid shutdowns in major cities including Shanghai.

It comes at a time of soaring inflation that is pushing central banks around the world to raise interest rates.

Sweden’s central bank on Thursday became the latest to raise rates, from zero to 0.25%.

The Federal Reserve is expected to raise US interest rates by half a point next week and signal further significant increases throughout the year.

The European Central Bank has so far refused to tighten borrowing costs and on Thursday ECB Vice President Luis de Guindos said a spike in consumer prices in the euro zone was ” very close” to reaching its peak.

Soaring prices have an impact on consumers and businesses.

Unilever reported a rebound in sales on Thursday after the British consumer goods giant overtook best prices to customers.

In other corporate news, Standard Chartered shares soared 16% in London after the bank targeted Asia and rising markets globally raised its outlook for annual revenue after a first optimistic sector.

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