Wall Street rebound lifts global and European markets as oil prices plummet

On Friday, global and European markets rose as Wall Street continued to rise on expectations that certain central banks will phase out their rate hikes.

A rising US dollar reduced the value of commodities. After the extension of Covid restrictions by China, the main crude oil importer, oil prices fell.

The STOXX Europe index recovered from session lows of as much as 1.1 percent to close at 0.1 percent from a five-week high. Before that, Amazon’s disappointing estimates on Thursday had hurt Europe’s tech sector, while the possibility of further Covid restrictions in China hurt mining and oil companies.

The 47-country MSCI main global index rose 0.92 percent. It won for the second week in a row as investors processed conflicting earnings and economic data.

At 1:52 PM ET, the Dow Jones Industrial Average was up 2.43 percent. (1752 GMT). The Nasdaq Composite was up 2.42 percent and the S&P 500 was up 2.14 percent, with gains in Apple on positive results countering Amazon’s bleak warning.

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“This stock market is clearly looking higher and is increasingly confident that next week’s Fed-driven fireworks display will be the start of talks to accelerate tightening at a slower pace,” said Edward Moya, senior market analyst at OANDA in New York.

US consumer spending rose more than expected in September and the Federal Reserve is on track to raise interest rates by 75 basis points for the fourth time this year. At the same time, underlying inflationary pressures continued to rise.

(with input from agencies)

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