US stocks are on the verge of the green zone, and the Dow Jones rises 52 points
In the final moments of Thursday’s trading, the main US stock indices moved from the red zone to the green zone, despite strong gains in the first minutes of the session, following the announcement of inflation data, which showed prices rising at a rate less than economists’ expectations.
The three indices ended Thursday’s trading at a rate of 0.15% higher than the Dow Jones Industrial Average, after adding 52 points.
An hour before the start of official trading on the New York Stock Exchange, the Bureau of Labor Statistics in Washington announced that the US consumer price index rose by 3.2% compared to last year in July, in a clear indication that inflation has lost some of its control over the US economy, which prompted stock markets to Celebration with the beginning of transactions.
During the first minutes of trading, the three main stock indices were in the green zone, with increases exceeding 1.25% in each of them, and the Nasdaq index approached 1.75%. Analysts said that the released data is sufficient justification to ease the Fed’s fears of renewed inflation hikes. But all of this collapsed, and the indicators slid to a loss, before regaining their balance at a later time.
In Europe, stocks rose on Thursday after a modest increase in US consumer prices raised hopes that the world’s largest central bank is close to ending the cycle of raising interest rates, while luxury goods companies drew support from easing travel restrictions in China, according to Reuters.
By the end of today’s trading, the Stoxx 600 European stock index rose 0.8%, hitting its highest level in a week, and rising for the second consecutive session, according to Reuters data.
The index of real estate companies, which are highly sensitive to interest rate movements, rose by 1.6%, while the index of personal and household goods companies led the gainers, up by 2.2%, after China lifted pandemic-related restrictions on mass tourism to more countries, which appeared in the market’s expectation of a boom in the tourism sector.
The Chinese decision caused a rise in oil prices at the beginning of today’s trading, and a rise in the stock prices of energy companies by nearly 2% at the beginning of trading, but all of this faded, after signs of a financial contraction appeared in China, the world’s largest importer of black gold.
By the end of trading on Thursday, oil prices were in the red zone, despite OPEC’s continued positive expectations for the outlook for demand for crude.
Since mid-June, and with the announcement of several countries within the OPEC + alliance to voluntarily reduce their production, oil prices continued to rise, so that US West Texas crude recorded at the beginning of trading on Thursday its highest level this year, while Brent crude touched its highest price since January.
Upon settlement on Thursday, Brent crude was down $1.15, or 1.3%, at $86.40 a barrel, while US West Texas crude was down $1.58, or 1.9%, at $82.82 a barrel.
“China’s data is getting worse, and that makes it difficult for them to boost their economy,” John Kilduff, a partner at Again Capital in New York, told Reuters.
2023-08-10 22:11:23
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