De globale aktier har en flot kurs mod weedenden, efter at den amerikanske centralbankchef, Jerome Powell, sagde, at der ikke er frygt for inflationen. Det fik renten til at falde, og aktierne strøg i vejret. S&P500-indekset satte rekord.
Stocks sailing into the weekend, thank you Powell
World stock markets are sailing into the weekend after Federal Reserve chief Jerome Powell eased inflation fears.
Powell, late on Thursday, signalled the Fed is nowhere near to reducing its support for the U.S. economy, a message he reiterated the second time in as many days. An expected rise in prices this year is likely temporary, while a rise in COVID-19 cases could slow the recovery, he warned.
Indeed, the number of Americans filing new claims for unemployment benefits unexpectedly rose last week, data showed.
Powell’s dovish comments sent U.S. Treasury yields down, encouraging stock bulls to push the S&P 500 to a record close.
While stock market futures are largely flat this morning, equities look set to end the week on a strong note.
The S&P 500 is up 2% this week, London’s FTSE is up around 3% and set for the biggest weekly rise in three months, while MSCI’s world stock index is hovering near record highs.
Deutsche Bank notes the VIX index of volatility — the so-called fear gauge of Wall Street – closed beneath 17 points on Thursday for the first time since the pandemic began last year.
It’s not so good for the dollar, however. The greenback is headed for its worst week of the year versus major peers as the Fed’s highly accommodative policy stance weighs.
Elsewhere, the IMF said late Thursday the world economy is recovering faster than expected from the COVID-19 crisis, but warned that a spike in interest rates could be especially painful for emerging economies.
Key developments that should provide more direction to markets on Friday:
– China’s factory gate price rose at their fastest annual pace since July 2018 in March as the world’s second-largest economy gathers momentum.
– Shares of Chinese fintech firm Linklogis, backed by tech giant Tencent, opened 10% higher in HK debut.
– Germany Feb industrial output down 1.6%, exports rise 0.9% m/m
– RBA financial stability review says monitoring rising property prices
– Central bank speakers include ECB Vice President de Guindos and Dallas Fed President Kaplan. – ECB’s Isabel Schnabel warns against attempts to block the EU Recovery Fund
