Global equities surged higher on Tuesday after being supported by confidence in consumers' ability to cope with inflation, which also helped the dollar's rise.
The midday trading session (U.S. time) saw all three major Wall Street indices move higher as Walmart raised its forecast for the holiday season and the U.S. Department of Commerce reported October retail sales activity that exceeded economists ’expectations.
The Dow Jones Industrial Average was up 0.61%, while the S&P 500 was up 0.58%and the Nasdaq Composite was up 0.7%.
The MSCI world equity index that tracks stocks in 45 countries rose 0.25%.
Strong data on retail sales shows that Americans are currently reluctant to spend despite rising prices, which give high hopes for the world's largest economic recovery as a result of the Covid-19 outbreak.
It also shows the Federal Reserve (Fed) need not worry about a slowdown in economic recovery by raising interest rates earlier. In addition, economists are confident that the inflation rate will also help the United States (US) dollar continue to rise.
Meanwhile, US Treasury yields also rose, with the benchmark 10 -year yield rising to 1.63% and this continued to support the strengthening dollar.
The data further boosted market sentiment after President Joe Biden and Chinese leader Xi Jinping held a virtual reunion session on Monday that lasted more than 3 hours. Although the meeting did not have a big impact, it was seen as a joint effort to improve cold relations and avoid confrontation between the two world powers.
Brent crude oil prices rose 0.8% at $ 82.68 a barrel while US crude oil prices rose 0.3% at $ 81.12 a barrel.
The spot gold price fell 0.60 at $ 1,851.32 per ounce.
