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GLOBAL MARKETS – Stocks gain strongly overnight and on weekdays, while copper falls further

Band Caroline Valetkevitch

NEW YORK, June 24 (Reuters)Shares in global markets rallied on Friday and posted strong gains for the week as a recent decline in commodity prices eased worries about inflation and the prospect of higher rates.

The S&P 500 climbed 3.1% in its biggest daily percentage gain since May 2020, and the MSCI World Index rose 4.8% for the week, snapping three consecutive weeks of declines.

US Treasury yields rose slightly from two-week lows.

Investors worry that aggressive interest rate hikes by the Federal Reserve and other major central banks to fight inflation could trigger a recession, which would reduce demand for commodities and other items.

“The (stock) market entered oversold this week, so it was time to rebound,” said Quincy Krosby, chief equity strategist at LPL Financial in Charlotte, North Carolina.

“We’ve seen oil prices decline along with other commodity prices,” she said, adding that the market move reflected “expectations of at least a sharp slowdown, if not a full recession.” .

Additionally, the University of Michigan’s consumer sentiment survey reading of five-year inflation expectations was positive for stocks, Krosby said. It rose to 3.1 from the preliminary estimate of 3.3% in mid-June.

The benchmark S&P 500 index confirmed a bear market last week.

The Dow Jones Industrial Average .DJI rose 823.32 points, or 2.68%, to 31,500.68, the S&P 500 .SPX gained 116.01 points, or 3.06%, to 3,911.74 and the Nasdaq Composite .IXIC added 375.43 points, or 3.34%, to 11,607.62.

For the week, the S&P 500 rose 6.4%, the Dow added 5.4% and the Nasdaq gained 7.5%.

The pan-European STOXX 600 index .STOXX rose 2.62% and the MSCI gauge of stocks across the world .MIWD00000PUS gained 2.63%.

Reference copper CMCU3 on the London Metal Exchange was down 0.5% at $8,367 a tonne after touching $8,122.50, down 25% from a high in March and the lowest level since February 2021. Other industrial metals also fell.

Oil prices were higher on Friday but posted their second weekly decline.

By day, Brent crude LCOc1 settled $3.07, or 2.8%, at $113.12 a barrel, while U.S. West Texas Intermediate crude CLc1 settled $3.35, or 3.2%, at $107.62.

In the Treasury market, yields fell from more than ten-year highs reached before last week’s Fed meeting. The US central bank raised rates by 75 basis points at the meeting.

Fed funds futures traders now expect the benchmark rate to rise to around 3.5% by March, down from expectations last week that it would rise to around 4%. FEDWATCH, USONFFE=

Benchmark 10-year yields were last at 3.125%. They fell from 3.498% on June 14, to the highest since April 2011. US10YT=RR

In the foreign exchange market, the US dollar fell and recorded its first weekly decline this month.

In afternoon trading in New York, the dollar index =USDwhich measures the US unit against the six major currencies, fell 0.2% to 104.013.

The falling US dollar boosted even commodity-focused currencies such as the Australian dollar and the Norwegian krone. Aussie AUD=D3 rose 0.8% to hit US$0.6946.

Spot gold XUA= added 0.2% to $1,826.39 an ounce

World exchange rates since the beginning of the yearhttp://tmsnrt.rs/2egbfVh

Overall asset performancehttp://tmsnrt.rs/2yaDPgn

The US bond yield curvehttps://tmsnrt.rs/3Niwj97

(Reporting by Caroline Valetkevitch in New York Additional reporting by Karen Brettell in New York and Carolyn Cohn in London Editing by David Gregorio and Matthew Lewis)

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