LONDON (Reuters) – The euro held on to a nine-month high against the dollar on Tuesday as global stocks rallied after rational business data in Europe and a number of corporate earnings maintained risk appetite. The market plunged to a multi-month high.
Business activity in the Eurozone experienced a surprising recovery in January, according to a survey.
The S&P Global Flash Composite Purchasing Managers Index (PMI) rose to 50.2 this month from 49.3 in December, surpassing 50 for the first time since June.
However, the UK Flash Composite Purchasing Managers Index (PMI) fell to 47.8 in January from 49.0 in December, the lowest level since January 2021.
MSCI’s global index (.MIAPJ0000PUS) rose 0.1% to a seven-month high.Europe’s broad STOXX 600 index (.STOXX) rose overnight with US stocks and some Asian stocks was stable after receiving
The MSCI World Index is up about 7% since the start of the year, thanks to expectations that global central banks are nearing the end of their rate hike programs and optimism induced by economic data.
The UK FTSE 100 (.FTSE) fell 0.4%, trailing the broader European market, while domestic mid-cap (.FTMC) gave up early gains after PMI data traded flat.
Japan’s Nikkei stock average (.N225) closes more than a month high after most Asian markets closed for second day for Chinese New Year Recovered all losses since then. Australian stocks also rose. (.AXJO)
“We are pretty focused on the Fed right now, and we have a meeting next week. I think that’s why it keeps pushing, “that moment,” said Fiona Cincotta, an analyst at CityIndex.
“We are watching the US PMI today,” she added.
The Federal Reserve’s Interest Rate Setting Committee will begin a two-day meeting on February 1st. Inflation has started to ease in recent months, and signs that the US economy is slowing may make the Fed start thinking about its next steps after a series of rate hikes. last year.
Microsoft is at the forefront of corporate earnings today with the most attention, and Microsoft plans to report earnings after the market closes.
Results in both the US and Europe help guide investors as to whether the renewed optimism about the economy that has boosted stocks in recent weeks is grounded in reality.
Hopes of an improving European economic outlook are also impacting currency markets, with the euro and other neighbors declining, along with suggestions that the US Federal Reserve is slowing rate hikes at a faster pace than the European Central Bank. continue to support the currency.
The Common European Currency stabilized at $1.0865, just off the previous day’s nine-month high of $1.0927. The British pound turned negative on the UK data, falling 0.25% to $1.234, retreating from his seven-month high on Monday.
This took the dollar index to 102.04, its lowest level in about six months.
Government bonds rose marginally globally as the US 10-year Treasury yield fell 3 basis points to 3.4913%. German 10-year yields fell 1 basis point to 2.18%.
Yields move inversely to prices.
Crude oil largely maintained its recent gains on optimism about the resumption of China’s economic activity. Brent crude fell 0.1% to $88.1, just below Monday’s nearly eight-week high of $89.09.
Gold rose 0.2% to a nine-month high. Precious metals continued to be supported by a weak dollar.
Edited by Christina Fincher
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