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London, May 18 (Reuters)-Wednesday stock rebounds have lost momentum as economic growth outlook and concerns about rising inflation have hit sentiment, with UK inflation at 9% and interest rates high. Emphasized the possibility of becoming.
Asian stocks managed to seek four consecutive rising sessions, but stocks were mixed in Europe and Wall Street futures showed a weak open.
Many analysts have characterized this week’s sharp rise as a common type of short-term bounce during the long-term downtrend in equities. Given the high degree of macroeconomic uncertainty, few are willing to predict the end of a sale of high-risk assets after the first five months of the year have been bruised. ..
Mark Hefere, Chief Investment Officer of UBS Global, said: Wealth management.
By 0810 GMT, the wide Euro STOXX 600 (.STOXX) was 0.1% off, while the UK FTSE 100 (.FTSE) was also 0.1% lower.
MSCI’s widest non-Japanese Asia Pacific stock index (.MIAPJ0000PUS) has risen 0.6%, the longest consecutive win since February. Japan’s Nikkei Stock Average (.N225) rose 0.94% and miners rose Australian stocks (.AXJO) by about 1%.
The MSCI World Equity Index (.MIWD00000PUS) has risen 0.1% so far this week, rising almost 2%, but remains 16% down from its January peak.
In the currency market, after the UK consumer price index reached 9% in April, Sterling fell 0.9% to $ 1.2387, the highest in 40 years, almost in line with analysts’ expectations. The pound rose sharply this week and part of Wednesday’s decline was due to profit taking.
Britain’s inflation rate is currently the highest of all major economies, but prices are rising rapidly around the world and central banks are raising rates a series, despite slowing economic growth. Have been forced to start.
Canada’s April inflation rate is also scheduled for late Wednesday.
The US dollar rose 0.3% to 103.61, returning to its 20-year high last week, and the euro fell to $ 1.0515 at a similar amount.
Positive data helped the short-term mood, US retail sales met expectations for a solid increase in April, and industrial production exceeded expectations.read more
Wednesday’s data showed that the Japanese economy did not shrink more than expected in the first quarter.read more
Shanghai is also heading towards the end of a prolonged blockade, and China’s deputy prime minister made calm comments to technical executives on the latest signs of lower pressure.read more
But the good news was offset by a reminder from Federal Reserve Chairman Jerome Powell that raising interest rates and perhaps pain would be needed to curb inflation.read more
Investors priced a 50 basis point US rate hike in June and July and are seeing the benchmark federal funds rate rise by 3% by early next year.
U.S. Treasury yields were stable on Wednesday, below highs in recent years, but Germany’s two-year Treasury yields were higher in December 2011, following comments from more hawkish central banks. It has risen to the highest price since. The European Central Bank’s Klaas Knot said Tuesday that it could raise rates by 50 basis points in July if inflation widens.
Most prices have fallen below recent highs, but commodities have rebounded against stock prices this week as the market found a reason to withhold hope for growth.
Brent crude oil futures on Wednesday were up 1.3% to $ 113.38 and US crude oil futures were up 1.64% to $ 114.24.
The S & P Global Ratings have lowered growth forecasts for China, the United States and the euro area, emphasizing that the outlook for the world’s major economies is weakening.
“The world economy continues to face an unusually large number of negative shocks,” said Chief Economist Paul F. Grunwald.
“Two developments have changed the macro picture,” he said, pointing out Russia’s invasion of Ukraine and inflation, which turned out to be higher, wider and more sustainable than initially thought.
Additional report by Tom Westbrook of Singapore.Edited by Kim Coghill
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