Friday, June 2, 2023

Wall Street and the dollar rise on solid data and advances in debt ceiling

NEW YORK (Reuters) – Wall Street rose and the dollar hit a seven-week high on Thursday as improving sales prospects for retail giant Walmart Inc and strong economic data eased fears of a recession.

* Investors also seemed buoyed by signs that negotiators appear to be nearing an agreement on the US federal government’s debt ceiling.

* All three major US stock indexes faltered initially but soon regained strength, with technology stocks leading the way behind the Nasdaq.

* Walmart reported better-than-expected quarterly results and raised its full-year sales forecasts, citing resilience in consumer spending and offsetting lower forecasts this week from Home Depot Inc and Target Corp.

* Debt Limit Debate “Kabuki is like theater — we’ve seen this story many times before,” said Charles Carlson of Horizon Investment Services in Hammond, Indiana. “Some will work on their own and that may mean a move down the road. There may be a short-term effect on the markets, but if you’re a long-term investor there’s no point basing your decisions on that.” debt ceiling talks.

* A report showed that fewer people than expected filed initial claims for jobless benefits last week, supporting the prospect of a “soft landing” but also lowering bets that the Federal Reserve would withdraw before the end of the year. Will cut interest rates.

* “Walmart’s numbers were good, and jobless claims indicate the economy is a bit stronger, so the narrative that the Fed will cut rates later in the year seems, for today, unlikely.” “, he added.

* European shares rose on optimism about the US debt ceiling and the German DAX rose to its highest since January 2022. The pan-European STOXX 600 index rose 0.4% and MSCI’s measure of global shares added 0.29%.

* Emerging market shares were up 0.14%. MSCI’s broadest index of Asia-Pacific excluding Japanese shares improved 0.28%, while Japan’s Nikkei rose 1.60%.

* In foreign exchange markets, the dollar index fell 0.62% and the euro 0.68% to $1.0765, while the yen fell 0.65% to 138.60 units per dollar and sterling fell 0.63% to $1.2407.

* The yield on the 10-year US Treasury bond hit 3.6343%, the highest since March, and the 30-year bond price 15/32 eased to 3.9059%.

* Crude oil prices were down about 1%, having risen in the previous session, and spot gold was down 1.3% at $1,955.09 an ounce.

Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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