2/2 © Reuters. PHOTO: Men wearing protective masks against the backdrop of the coronavirus epidemic (COVID-19) use mobile phones in front of an electronic board showing the Japanese Nikkei index, outside a brokerage house in Tokyo, Japan, June 16, 2022. REUTERS / Kim Kyung- Hoon
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By Carolyn Cohn and Tom Westbrook
LONDON / SINGAPORE (Reuters) – Global stocks and benchmark US bonds focused on their first weekly profit in a month on Friday, with fears of economic growth mitigated by the view that sliding prices and prices of other commodities could stop the weak inflation.
The week was marked by a sharp decline in commodities amid fears that the global economy appears volatile and that rising interest rates will hurt growth – which in turn is pushing traders to lower inflation expectations and cut some stakes on the size of the rises.
“Inflation will remain above the target, but it is increasingly likely to reach its peak in the next few months,” said Andrew Hardy, investment manager at Momentum Global Investment Management.
“Markets could take this quite well – there is potential for recovery later in the year.”
Copper, a leader in economic production with its wide range of industrial and construction applications, is heading for its steepest weekly decline since March 2020. It fell in London and Shanghai on Friday and fell more than 7% during the week.
Tin fell 9.7 percent to $ 24,380 a tonne, its lowest level since March 2021, and is on track for a weekly percentage drop of nearly 22 percent, its biggest record.
futures fell more than 3% during the week to $ 109.70 a barrel and 10% for the month, while reference grain prices sank, with Chicago wheat falling more than 8% for the week. [O/R][GRA/]
Gold rose 0.29% to $ 1,828.50 an ounce, but headed for a second consecutive weekly decline.
The declines offered some easing for stocks, as energy and food were the drivers of inflation. After heavy recent losses, MSCI’s global stock index rose 0.3% during the day and 2.4% this week, setting it for its first weekly gain in May.
The United States rose 0.7 percent after major Wall Street indexes reported solid gains on Thursday. [.N]
European stocks rose 0.82% to record small weekly earnings. increased by 0.73%, also showing a small increase during the week.
“While market worries about the sharp slowdown are to blame for recent movements in lower commodity prices, lower commodity prices really feel as if they could be exactly what the doctor ordered for the global economy,” he said. NatWest strategist Brian Dingerfield.
“So many of our fears of a difficult landing are related to concerns about raw material prices.
The Federal Reserve’s commitment to controlling 40 years of inflation is “unconditional,” US Central Bank chief Jerome Powell told lawmakers on Thursday, while acknowledging that sharply higher interest rates could lead to higher unemployment.
Germany is heading for gas shortages if Russian gas supplies remain as low as they are now due to the conflict in Ukraine and some industries will have to close if there are not enough in the winter, Economy Minister Robert Habeck told Der Spiegel on Friday.
German business morale fell more than expected in June.
Bonds rose sharply in hopes that bets on aggressive interest rate hikes would have to be curtailed, with Germany’s two-year yield falling 26 basis points on Thursday, the biggest drop since 2008.
The German 10-year yield fell 4 basis points on Friday after falling 29 basis points on Thursday, heading for its first weekly decline since mid-May. [GVD/EUR]
The benchmark was stable at 3.0666% after falling 7 basis points on Thursday and [US/]
Bond funds suffered their biggest flows from April 2020 in the week to Wednesday, while shares lost $ 16.8 billion as markets were blocked in a maximum downturn, BofA’s weekly analysis of flows showed on Friday.
The US dollar fell from 20-year highs last week. It was stable at $ 1.0529 per euro and fell 0.2% to 134.67 yen. [FRX/]
The battered yen stabilized this week and received little support on Friday from Japanese inflation, which exceeded the Bank of Japan’s 2% target for the second month in a row, putting more pressure on its ultra-easy political position.
MSCI’s broadest Asia-Pacific equity index outside Japan rose 1.1 percent, helped save short sellers by Alibaba (NYSE 🙂 – which rose nearly 6 percent – amid hints that technology repression in China they disappear.
increased by 1.2% to 2% weekly profit.
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