LONDON, Aug 11 — Global shares edged higher today as investors bet on the pace of interest rate hikes slowing after data pointed to inflation peaking, leaving the dollar struggling after its biggest fall in five months.
Investors now turn to US producer prices data, along with the latest jobless claims numbers, ahead of Wall Street’s open. “If you look at the problems that are still playing out across Europe with supply chains and gas prices, all it means is that prices will settle at a much higher mean rather than going back to 2 per cent,” Hewson said.
The World Federation of Exchanges said US$18 trillion has been wiped off global markets in the first half of 2022, a 15 per cent drop in stock market capitalisation, as the global economy tries to recover from COVID-19 and deal with fallout from war in Ukraine.“We think a Fed doing battle with higher core inflation will keep the dollar supported on dips - especially against the euro and yen,” ING said in a note.
“Rising real yields, due to the Fed’s commitment to fighting inflation, have been an enormous problem for valuations in 2022, so any dovishness is seen as positive by the stock market, particularly for the highest valued companies,” said Oliver Blackbourn, multi-asset portfolio manager at Janus Henderson Investors.