US stocks rise… and investors are waiting for “consumer prices”
US stocks rose on Tuesday as concerns about raising interest rates eased, while investors waited for the consumer price index, which is expected to be released today, Wednesday, in Washington, hoping to touch the parameters of the Federal Reserve’s monetary policy in the coming weeks.
By the end of Tuesday’s trading, the Dow Jones Industrial Average added 317 points, representing 0.93% of its value, the S&P 500 rose two-thirds of a percentage point, while the Nasdaq index only rose by 0.55%.
Tuesday’s rise was led by Activision, the American video game company, which rose by more than 10%, after a judge rejected the Federal Trade Commission’s request to prevent Microsoft from acquiring it.
The Consumer Price Index report for the month of June is scheduled to be issued on Wednesday, and the Producer Price Index will be issued on Thursday. Both reports are expected to clarify whether the decline in inflation continued in the month ended, in an attempt to anticipate interest rate movements. Economists polled by Dow Jones had expected the CPI to rise 3.1%, year on year.
In Europe, stocks ended higher on Tuesday, amid hopes that the current interest rate hike cycle is nearing its end, while China extended some of its monetary policy measures to support the ailing real estate sector.
The Stoxx 600 index of European stocks closed up 0.7%, to end trading higher for the third consecutive session, and Irish stocks jumped 2.1%, to come at the forefront of European stocks.
Irish stocks rose due to the rise in the share of “King Span” company, 15.7%, after expecting to achieve record profits in the first half of the year, according to “Reuters”.
Mining was among the biggest gainers in Europe, rising 1.8%, as metal prices rose thanks to Beijing’s support for the real estate market.
China extended some policies as part of a rescue package it announced in November to save the real estate sector, until the end of 2024.
The British FTSE retreated from its European peers due to the pressure resulting from the strength of the pound sterling on the export-heavy index, after the data showed strong wage growth in Britain.
In a related way, oil prices jumped on Tuesday, recording a rise of more than 2%, supported by the decline in the dollar and hopes for an increase in demand from developing countries, as well as a reduction in supplies from the largest oil exporters in the world.
Global oil prices rose as the US Energy Information Administration raised, on Tuesday, its forecast for global oil demand growth in 2023 by 170,000 barrels per day, to reach 1.76 million barrels per day.
Brent crude futures jumped $1.71, or 2.2%, to $79.40 a barrel, and US West Texas crude futures rose $1.84, or 2.52%, to $74.83 a barrel, upon settlement.
The settlement price for Brent is the highest since April 28, while the settlement of US crude was the highest since May 1.
The dollar fell to a two-month low against a basket of other currencies, a day after several Federal Reserve officials signaled that the bank was nearing the end of its monetary tightening cycle. A weak dollar makes crude oil cheaper for holders of other currencies.
The International Energy Agency said Monday that the oil market is expected to remain tight in the second half of 2023, attributing this to strong demand from China and developing countries along with recently announced supply cuts, including from Saudi Arabia and Russia.
On Tuesday, the Secretary-General of the Organization of the Petroleum Exporting Countries (OPEC) said that global demand for energy of all kinds is expected to rise by 23% until 2045.
2023-07-11 22:13:17
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