Global stock markets climbed Friday despite persistent recession concerns, while oil prices surged.
But the euro failed to gain much traction, which analysts put down to the other piece of data released Friday: inflation rose to a new record of 8.9 percent in July. Companies are in the midst of reporting quarterly earnings, and many are showing the strains from inflation and disrupted supply chains.
China is also struggling, hit by Covid-induced lockdowns in major cities including Shanghai and Beijing that have hammered all sectors and supply chains. Despite the recent rebound, gold remains on track for a fourth straight monthly loss, with bullion-backed exchange-traded funds set for the biggest monthly outflow since March 2021. Treasury Secretary Janet Yellen gave a glass-half-full assessment of the economy, acknowledging a slowdown she called necessary to tame inflation while rejecting the notion the country had entered a recession.
Economy minister Nadia Calvino warned this week that inflation constituted “the main challenge for the Spanish economy”. Separately on Friday, figures published by the European Union statistics agency showed that annual inflation in the eurozone’s 19 countries rose to 8.9 percent in July, an increase from 8.6 percent last month.
Alibaba shares closed 6.1 percent lower in Hong Kong on Friday -- ranking among the largest decliners in the Hang Seng Tech Index -- and were 11 percent below their Tuesday close. "It's hard for A-share companies to obtain approval if there is a change in key shareholding structure within three years," Wen said.
British Airways parent IAG said Friday it flew back into profit for the first time since the start of the Covid pandemic, boosted by a"strong recovery" in demand.IAG said in a statement that it swung back to net profit of 133 million euros in the second quarter from a loss of 981 million euros a year earlier.The group had already forecast a return to annual profit after Covid travel curbs were fully lifted.
After an extended period of pessimism on trading floors fuelled by soaring inflation and the central bank's monetary tightening campaign, investors are beginning to speculate that the market may have reached its nadir.
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