Stocks Eye on Growth Boost and Rate Hikes Top
Asian stocks rose on Friday and were set for weekly earnings. Strong earnings on Amazon boosted U.S. futures; The sale of bonds spread to other markets in Japan; Because investors were reacting to solid signals from European central banks. MSCI Asia-Pacific Wide Index outside Japan gain 1%, followed by a 3% increase in the Hang Seng Index on the first day of trading after this week’s lunar New Year holidays. The Nikkei closed down 0.7%. After big sales, Meta Platforms fell 26% on Thursday; Wall Street futures rose thanks to revenue. This boosted Amazon shares to about 14% in after-market trading.
S&P 500 futures increased 1%. The Nasdaq 100 futures rose more than 2%. According to Wilsons Advisory’s head of investment strategy, there is reciprocal action in terms of profit. This causes instability against the background of macro pressure; From stimulus removal; Also with some delays on the profit front. Shares of Snap and Pinterest rose again in extended trading, following robust quarterly reports. Twitter jumped in, thus compensating for earlier losses.
European futures added 0.25%. DAX increased 0.33%; FTSE by 0.58%. Foreign exchange markets were quiet; After an awkward Thursday, both the BoE and the ECB sound. The sale of government bonds from Europe and the United States to Japan spread on Friday; Which, for the first time since 2016, raised Japan’s five-year revenue above zero. Yields rise when bond prices fall. Oil added to inflationary pressures. U.S. crude oil hit a seven-year high of $90.99 a barrel. As a result, the seventh consecutive weekly increase was observed.
Stocks and Inflation
Job data in the U.S. will be released later on Global Day. Part of the economists predicts a slight increase in jobs. However, the delay in employment caused by the latest wave of Omicron variant COVID-19 infections could lead to a decline.
Even a weak number can support stocks; If it looks bad enough to delay policy tightening. However, many analysts think that the wheels are already spinning globally to higher rates. The ECB president left the door open on Thursday to raise rates. The Bank of England grew interest rates on Thursday. Almost half of the politicians wanted more significant growth. According to economists, the environment is changing in terms of central bank positions; Which were previously so camped in growth-supporting areas; However, they are now rapidly moving to fight inflation.
Treasury was stable during the Asia session; The benchmark 10-year revenue was 1.8364%. The euro made a slight increase and rose about 0.2% to a three-week high of $1.1472. However, cautious sentiment stopped trading currencies. However, the Australian dollar fraction was weak at $0.7127. The kiwi was at $0.6665. Gold was unchanged at $1806 an ounce.
