The global stock market showed a ray of investor optimism despite inflation concerns which affected bank earnings thus affecting trading sentiment.
In general, equity markets are still under pressure due to the hawkish actions of major central banks in curbing inflation.
According to Oliver Blackbourn, portfolio manager Janus Henderson, each month the inflation rate will continue to rise just as inflation in Britain reached a 30 -year high of 7%.
He added that rising prices further heated up the pressure on the Bank of England (BOE) to be more aggressive in offsetting real earnings, however, the shadow of weak growth signaled the danger of tightening action too quickly.
Meanwhile, the pan -European STOXX index added 0.03% and the MSCI gauge of worldwide stocks reached 0.79%.
On the Wall Street market, the Dow Jones Industrial average rose 0.74%, the S&P 500 gained 0.89%and the Nasdaq Composite added 1.75%.
The Refinitiv data report states that investors are predicting sluggish earnings by the largest U.S. bank, are eyeing investment banking yields that have stalled since Russia’s invasion of Ukraine.
Clearly, in the first quarter, the total value of unfinished and completed offers fell to the lowest level since the 2nd quarter of 2020.
Overnight in Asia, meanwhile, saw weaker Chinese import data out of the outlook, but it added to the view that Beijing would loosen policy and indirectly, help MSCI's broad index of Asia -Pacific stocks outside Japan close 0.89%higher.
Meanwhile, declining Treasury (US) yields and data on inflation did not deter investors from believing that inflation may have peaked.
The 10 -year Treasury yield note was down 5.3 basis points at 2.674% from a 3 -year high of 2.836% before the inflation data.
2 -year treasury yields in line with interest rate expectations fell 5.5 basis points to 2.334%.
Currency summary, the dollar index was down 0.445% while the Euro was up 0.53% at $ 1.0883 and the New Zealand dollar was down 1.1% after the Reserve Bank of New Zealand (RBNZ) raised rates by 50 basis points.
