Finance & Stock Market
Global stocks hit two-year highs, as dollar eases
By - 08 Feb 2024 09:58 PM
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Global equities rose to a more than two-year high and the S&P 500 touched a record peak on Wednesday, as strong earnings offset jitters related to US regional banks and China markets. Bonds were under modest pressure, as comments from Federal Reserve officials reaffirmed expectations that the central bank may not soon cut rates.The MSCI world equity index, which tracks shares in 49 nations, gained 0.37% by 10:11 a.m. EST (1511 GMT) after hitting its highest since mid-January 2022. Markets got a boost from a rally in Chinese blue-chips. On Wall Street, the Dow Jones Industrial Average rose 0.25% to 38,619.03, the S&P 500 gained 0.48% to 4,978.24 and the Nasdaq Composite added 0.48% to 15,683.15. "We are at the midpoint of the 4Q earnings reporting season, and we would say that there has been more good news than bad," Arthur Hogan, chief market strategist with B. Riley Wealth, said in a morning note. The US regional banking sector remained a concern as Moody's downgraded New York Community Bancorp to junk citing pressure on its funding and liquidity. The stock lost 22% on Tuesday, to be down 60% since it reported surprise losses last week. Chinese regulators continued efforts to steady markets, placing further curbs on short selling and state investors said they were expanding their stock buying plans. President Xi Jinping would discuss the stock market with financial regulators, Bloomberg News reported, though there was no confirmation this had happened or what was discussed. The head of China's securities regulator was replaced on Wednesday, according to Xinhua news agency, as policymakers struggle to stabilise the country's main stock indexes after a plunge to five-year lows. |
