A Surge in Global Stocks Market

A Surge in Global Stocks Market

There was a surge in global stock markets on Friday, 14th October 2022, following a rebound from a slump in Wall Street, which is being caused by the higher-than-expected inflation figures. Market benchmarks in Paris and London started up by +1 percent with Tokyo rising 3.3% in its biggest gain in a day they have not experienced in seven months. Also, Shangai and Hong Kong rose. Benchmarks in the US also indicate that US crude increased by almost $2 per barrel. On Wall Street which is the future for benchmark P and S 500 index reduced with 0.4%. Wall Street benchmark reduced heavily following the 8.2% increase in the consumer price index on Thursday. However, the P and S 500 rebounded to 2.6% which it’s the biggest gain it has recorded in two and half years. According to a report by Vishnu Varathan of Mizuno Bank, the sticker shock concerning inflation was shrugged off as traders are expecting another rise in the interest rates starting from next month in order to regulate the surging prices((“Global stocks surge after Wall Street rebounds from inflation jolt,” 2022). Worth noting, central and Fed banks across Asia and Europe have resulted to increasing rates with wide margins so as to contain the inflation. Traders are afraid of tipping the global economy towards recession. During the early stages of trading, the CAC rose 0.8% to 5, 925.44 in Paris and the FTSE 100 also rose by 0.6% to 6.894.30. In Frankfurt, the DAX also advanced to 12, 420.24, a 0.5% increase. The Dow Jones Industrial average reduced by 0.3 percent on Wall Street on Thursday. Notably, the CPI report for Thursday indicated that inflation is beginning to spread more widely in all sectors of the economy.

References

Global stocks surge after Wall Street rebounds from inflation jolt. Business-standard.com. (2022). Retrieved 17 October 2022, from https://www.business-standard.com/article/international/global-stocks-surge-after-wall-street-rebounds-from-inflation-jolt-122101400664_1.html.