European stocks rise, dollar climbs as Fed rate path pondered
Send a link to a friend
[May 08, 2024] By
Harry Robertson and Kevin Buckland
LONDON/TOKYO (Reuters) -European stocks rose on Wednesday, boosted by
company earnings, while U.S. futures were flat and the dollar climbed as
investors assessed the signals on the path for Federal Reserve interest
rates.
The yen fell even with the threat of currency intervention from Japanese
authorities to support it. Oil prices wallowed near two-month lows.
Europe's continent-wide Stoxx 600 index rose 0.32% on Wednesday,
supported by upbeat earnings reports, after rising 1.1% the previous
day. Germany's DAX climbed 0.45% and Britain's FTSE 100 rose 0.35%.
Global stocks fell sharply in April as strong U.S. economic data caused
investors to rein in their bets on rate cuts from the Fed and, by
extension, other major central banks this year.
But they have rallied again in May, partly encouraged by Friday's
nonfarm payrolls jobs report, which showed a cooling in the hot U.S.
labour market.
Minneapolis Fed President Neel Kashkari suggested the U.S. central bank
may still need to forgo interest rate cuts this year due to stubborn
inflation.
"The market is trying to suss out whether data, particularly out of the
U.S., is still coming out strong, or is coming out just right," said
Samuel Zief, head of global FX strategy at JPMorgan Private Bank.
"Things in this week so far are more driven by the micro than the macro:
Company-specific earnings releases and things like that have been
driving things."
U.S. stock futures for the S&P 500 and Nasdaq indexes were little
changed on Wednesday. Four straight sessions of gains for the S&P has
put it within 1.5% of the record high touched in March.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.45%
overnight.
![](http://archives.lincolndailynews.com/2024/May/08/images/ads/current/chuckglass_sda_SHG_2024.png)
[to top of second column] |
![](../images/050824PIX/busine70.jpg)
Pump jacks operate in front of a drilling rig in an oil field in
Midland, Texas U.S. August 22, 2018. REUTERS/Nick Oxford/File Photo
![](http://archives.lincolndailynews.com/2024/May/08/images/ads/current/atlantabank_lda_SHG_2024.png)
In currency markets, the yen dropped 0.5% to 155.42 per dollar even
after Bank of Japan governor Kazuo Ueda said the central bank may
take monetary policy action if currency falls affect prices
significantly.
Japan has intervened to boost the currency from its lowest level in
34 years in recent days, according to traders and analysts, keeping
the market alert for further swings.
The dollar index, which tracks the currency against six peers, rose
0.16% to 105.59, although remained around 1% below a 5-1/2 month
high touched in April.
U.S. Treasury yields have fallen in recent days as traders have
moved to price back in two interest rate cuts from the Fed this
year, having seen one as most likely in the middle of April. The
10-year yield, which moves inversely to the price, was little
changed at 4.469% on Wednesday.
Crude oil extended Tuesday's declines after market sources said that
data due later from the American Petroleum Institute will show a
jump in U.S. crude and fuel stocks for last week, a sign of lower
demand.
Meanwhile, the U.S. believes negotiations on a Gaza ceasefire should
be able to close the gaps between Israel and Hamas, lessening the
risks of supply disruptions. Brent crude oil futures fell 1.4% to
$82.02 a barrel.
(Reporting by Harry Robertson in London and Kevin Buckland in Tokyo;
Editing by Jacqueline Wong and Toby Chopra)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |