Stocks surged on Wall Street on Tuesday but fell in European markets after a pessimistic economic forecast from the World Bank as investors awaited the release of US inflation data and corporate earnings reports.
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“Investors are waiting,” said Art Hogan, an analyst at B. Riley Financial, referring to Thursday’s US inflation report and Friday’s earnings reports from JPMorgan Chase and other banks.
The leader of the rise of the Wall Street indexes was the index “Nasdaq Composite,” whose 1.0% increase was driven by Amazon’s parent companies, FacebookA half Other companies’ “platforms” and share prices rise.
Investors, however, are more concerned about Thursday’s report on the US consumer price index (CPI). It is expected to show more moderate inflation after last year’s sharp price increases.
CPI data will be assessed in relation to their potential impact on US Federal Reserve (FRS) monetary policy. The FRS has been aggressively raising interest rates in an effort to curb inflation.
In a speech in Sweden on Tuesday, FRS chief Jerome Powell did not say what the central bank’s monetary policy decisions might look like going forward, but said the FRS’s isolation from electoral politics allows it to raise interest rates. interest as needed “without consideration of short-term political factors”.
The World Bank (WB) cut its forecast for global gross domestic product (GDP) growth this year to 1.7% in its latest economic forecast released on Tuesday, nearly half of what it estimated in its earlier June forecast .
The Dow Jones Industrial Average rose 0.6% to 33,704.10 on Tuesday, the Standard & Poor’s 500 rose 0.7% to 3,919.25 and the Nasdaq Composite added 1.0% to 10,742.63 points.
London’s FTSE 100 fell 0.4% to 7,694.49 on Tuesday, Frankfurt’s DAX extension 30 fell 0.1% to 14,774.60 points, while the Paris CAC 40 stock index fell 0.6% to 6,869.14 points.
WTI crude oil rose 0.7% to $75.12 a barrel in electronic trading on the New York Stock Exchange on Tuesday. The price of “Brent” crude on the London Stock Exchange rose by 0.6% to 80.10 dollars a barrel.
The euro rose against the US dollar on Tuesday from $1.0730 to $1.0739 per euro, the British pound against the US dollar fell from $1.2184 to $1.2153 per pound and the US dollar against the Japanese yen rose from 131.88 to 132.21 yen per dollar. The euro rose against the British pound from 88.07 to 88.34 pence to the euro.
