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Stocks Rally on Hopes of Central Bank Pivot and Signs of China Rebound

  • European and Asian stocks rallied on hopes central banks are ending rate hikes and China rebound signaled
  • ECB may wait for more evidence tightening has slowed euro zone economy before rate cuts
  • China retail sales and industrial output topped expectations in August, "green shoots"
  • Euro rose after hitting lowest since March, dollar index edged down but still near 9-year peak
  • U.S. producer prices and retail sales rose more than expected in August, fed by gasoline prices
  • Traders still bet Federal Reserve will skip a rate hike next week, possibly ending tightening cycle
nasdaq.com
Relevant topic timeline:
European stocks rebounded and government bond yields rose again as oil prices firmed, despite smaller rate cuts by China than investors had expected, with hopes remaining for further stimulus.
European stock markets rise as German producer prices drop, China's rate cut disappoints, and the UK housing market slumps; oil prices rebound on tight supplies and expectations of lower output.
Asian stocks rise as traders await signals on interest rate plans from the Federal Reserve conference, with hopes that further rate hikes will be ruled out but concerns about inflation persisting.
Asian stock markets rebounded from an eight-day losing streak, supported by a recovery in Chinese shares, while benchmark Treasury yields reached a 16-year high on concerns of sustained high interest rates.
Despite recent market gains, investors are concerned that the current rally may be the last hurrah before an economic contraction, especially after the Federal Reserve indicated that it could hike interest rates twice more this year.
Asian shares are mostly rising after Wall Street rallied to its best day since June after pressures from the bond market relaxed a bit.
Asian shares rally as Nvidia's strong performance boosts Wall Street and a decrease in U.S. bond yields eases global borrowing costs.
Stocks rebounded after Fed Chair Jerome Powell indicated that the central bank is prepared to raise interest rates further, providing a cautious but ultimately optimistic outlook on the economy.
Equity markets historically rally after the Jackson Hole symposium, with a success rate of over 80%, despite the recent concerns about rising yields and inflation, indicating that stocks may rise despite higher rates.
Chinese stocks rally as Beijing takes steps to boost the market.
European shares traded higher as traders considered the possibility of higher interest rates from the U.S. Federal Reserve and awaited upcoming economic data, while U.S. stocks opened higher and Asian stocks rallied due to a stock market policy change in China.
Equity markets are higher as investors consider macro data, with Wall Street experiencing a rally fueled by optimism about interest rates and job openings.
Asian markets are expected to start strong following a rally in stocks and risk assets, driven by a softening of the U.S. interest rate outlook and positive economic indicators, although concerns about the Chinese market and inflation remain.
Stocks are expected to rally next month, with the S&P 500 potentially reaching its previous highs, according to Fundstrat's Tom Lee, who cited reasons such as a cooling economy, no further interest rate hikes from the Fed, overly bearish sentiment in August, and historically strong performance in September.
China's stock market rebound may be temporary as corporate earnings continue to decline and companies revise down their outlooks, causing concern for foreign funds and prompting Bank of America to urge caution.
U.S. stock investors are closely watching next week's inflation data, which may determine the future of the equity rally, as signs of a soft landing for the U.S. economy have contributed to the S&P 500's gains, but too high inflation could lead to fears of higher interest rates and stock sell-offs.
India's stock market has seen a rally as strong macroeconomic fundamentals and China's economic slowdown keep foreign investors invested in Indian stocks, while a surge in retail investor interest continues to drive the market.
Asian markets are expected to finish the week strong due to positive movements in the U.S. and Europe, although the release of economic data from China may dampen the mood, as it includes indicators such as house prices, fixed asset investment, and unemployment. The Chinese government is aiming to support the economy, but doubts remain about reaching the 5% GDP growth target and trade relations with the West continue to deteriorate. However, if investors continue with the bullish momentum from Thursday, these concerns may be temporarily set aside.
Asia-Pacific markets rallied after China's August economic data exceeded expectations, with retail sales and industrial production showing stronger growth, although fixed asset investment fell slightly below forecast; meanwhile, the US stock market also ended higher as producer prices increased more than expected.
Euro zone bonds and stocks rally as traders maintain their bets on the European Central Bank cutting interest rates next year amid concerns over economic growth.
China's positive retail sales and factory production data, coupled with expectations of a peak in interest rates at major central banks, are likely to boost equity markets at the European open.
UBS Investment Bank suggests that the stock slump in China is almost over and investors should be more optimistic about the market outlook, as economic fundamentals have improved and technical signals indicate a potential market rebound.
Asian stocks dipped across the board as investors interpreted the US Federal Reserve's latest policy statements as signaling higher-for-longer interest rates.
Most Asian stocks retreated as markets absorbed the outlook for higher interest rates and concerns over a property market crisis in China, while Japanese shares rose on the back of the Bank of Japan's dovish stance.
Stocks rallied on Thursday, recovering from recent losses, as the S&P 500 rose 0.6% and the tech-heavy Nasdaq Composite gained 0.8%, while the Fed's higher-for-longer stance on interest rates continues to impact markets. Additionally, mortgage rates hit a 23-year high, dampening homebuyer activity, and the US economy showed slightly weaker growth in the second quarter than initially reported.
Investors attempt a risk-on rally as Treasury yields and oil prices stabilize, but concerns over higher interest rates continue to impact sentiment in European and global markets.
Asian markets are expected to rebound following a relief bounce around the world on Wednesday, with currency traders keeping an eye on inflation reports from across the continent.
Stocks rallied on Friday after a positive jobs report, with employment increasing and wage growth slowing, leading major U.S. indexes to close the week in the black; upcoming reports on producer and consumer inflation will provide further insight for policymakers.
Asian markets are expected to open higher following a rebound in risk sentiment driven by comments from Fed officials suggesting a possible pause in rate hikes, resulting in gold and oil prices rising, the dollar weakening, and Wall Street recovering from losses.
Asian shares rise as bond yields ease and oil prices dip, although markets are cautious due to violence in the Middle East, with European and US markets also looking set to open higher.
Shares in Europe and Asia rise on optimism about interest rates, despite warnings from the International Monetary Fund about the slowing global economy.
Asian markets are expected to start positively due to a slump in U.S. bond yields and comments from Federal Reserve officials signaling the end of interest rate hikes, despite concerns in China's property sector and other economic indicators.
Asian markets are expected to have a positive start on Wednesday, driven by a slump in U.S. bond yields and comments from Atlanta Fed President Raphael Bostic suggesting that the Federal Reserve has finished raising rates, easing concerns and boosting risk appetite.
Asia's stock markets rise on stimulus hopes in China and strong earnings in South Korea, while the dollar retreats as Federal Reserve officials adopt a dovish tone on interest rates.
Asian shares rise as markets bet that U.S. rates have peaked after more dovish remarks from Federal Reserve officials, while traders await the U.S. consumer inflation report for further monetary policy clues.
Asian shares slide on stronger-than-expected U.S. consumer prices, increasing the likelihood of the Federal Reserve keeping rates higher for longer.