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Global stocks rose as earnings increased, the US dollar hit a 20-year high

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© Reuters. FILEPHOTO: After the outbreak of coronavirus disease (COVID-19), a man wearing a face mask stood in front of an electric board and used the stock indexes of Japanese Americans (top of C) and other countries as a securities company in the business district. Shown outside of Tokyo, Japan, Janu

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Chris Prentice and Tom Wilson

Washington / London (Reuters)-The US dollar hits its highest level since 2002 on Thursday as strong earnings reports offset dark US economic data, rising Wall Street and European stocks falling below six-week lows. Reached.

The yen fell to its 20-year low after the Bank of Japan vowed to buy unlimited 10-year bonds daily to meet its yield targets. Emerging market currencies have soared and weakened, and the cost of borrowing the US dollar in currency derivatives markets has risen significantly.

Oil prices have risen after reports that Germany is no longer opposed to Russia’s oil embargo, which could further tighten global supply. [O/R]

By 2:29 pm Eastern Standard Time (1830 Greenwich Mean Time), it rose 604.71 points (1.82%) to 33,906.64, rose 103.21 points (2.47%) to 4,287.17, and increased 382.83 points (3.07%). It became 12,871.76.

Driven by the rise in Facebook (NASDAQ :)’s parent meta platform, tech stocks generated strong earnings, up nearly 19%.

These profits supported Wall Street even after the US Department of Commerce said in advance GDP estimates that gross domestic product fell 1.4% annually in the previous quarter.

Cliff Hodge, Chief Investment Officer of Cornerstone Wealth, said:

“Trade, inventories and government spending have all been dragged in, but consumers have held up and corporate investment is strong. The shift to service spending is a precursor to rising inflation, and the core PCE has come to light a bit. Mistakes also give the federal government some breathing rooms. “

The MSCI World Equity Index rose 12.25 points (1.87%) to 666.15.

European stocks rose with strong corporate earnings. Pan-Europe closed at 0.6%, but below the session highs. Monetary tightening by the European Central Bank. ()

Both Frankfurt and Paris indexes have risen.

Standard Chartered Bank (OTC :), a London-listed bank, surged 13% due to strong quarterly earnings, while Hong Kong-listed stocks had previously risen more than 10%.

“The market was pretty scared at the beginning of the earnings season, but last night’s Meta earnings seemed calming,” said Kasper Hens, senior portfolio manager at BlueBay Asset Management in London. Said. For US stocks, it should provide some relief to investors looking at the dollar’s rise. “

Previously, MSCI’s widest non-Japanese Asia Pacific stock index rose 0.93%.

The Bank of Japan’s move was in stark contrast to investors’ belief that US interest rates began to rise rapidly and were trying to raise the dollar. [FRX/]

“The message from this morning’s monetary policy statement is that the Bank of Japan sticks to an unlimited bond purchase plan to meet its 0.25% 10-year yield target and budgets,” said Arne Petimezas, senior analyst at AFS Group. It’s about refusing to join. ”

The euro reached a five-year low against the dollar at $ 1.04695 before reducing losses. Still, we’re on track for the worst monthly performance since January 2015.

The euro’s depreciation since 2017 has rekindled the possibility of reaching the same level against the dollar for the first time in 20 years, as concerns over the eurozone’s recession are urging investors to make bearish bets. increase.

The depreciation of the yen and the euro raised it to 103.930, the highest level since December 2002.

Graphics: Yen and Euro rise against US dollar https://fingfx.thomsonreuters.com/gfx/mkt/klvyklqaqvg/euro2804.PNG

Investors helped Japanese exporters to depreciate their currencies, raising 1.75%, the best day of the two weeks. Japanese government bonds showed the best recovery in a month.

US Treasuries rose after strong signs of the US employment market outweighed the expected decline in economic growth in the first quarter. [US/]

Investors expect US interest rates to rise and that next week’s Federal Reserve will bring the first of several consecutive 50 basis point increases.

Crude oil prices have risen, futures have risen 1.65% and 2.85%.

As long as Berlin is given time to secure an alternative supply, the German representative of the European Union is no longer opposed to a complete Russian oil embargo, the Wall Street Journal reported Thursday. Germany relies heavily on Russia’s energy imports and previously opposed a complete ban. [O/R]

Prices have risen from the 10-week lows at the beginning of the session under pressure from the stronger US dollar. [GOL/]

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