U.S. stocks climb after Yellen eases recession fears - BNN Bloomberg

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U.S. stocks resumed a rally as investors weighed bets the Federal Reserve is approaching the end of its interest-rate hikes against evidence pointing to a slowdown in China's economy.

Yields tumbled after ECB Governing Council member Klaas Knot said monetary tightening beyond next week’s meeting is anything but guaranteed. The yield on 10-year German securities fell as much as 8 basis points to 2.4%, a two-week low.

Last week JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc. delivered upbeat results through a quarter that included regional banking tumult and ongoing interest-rate hikes amid inflation concerns. “It’s clear that it’s the receding inflation narrative which is driving everything,” said Gilles Guibout, a portfolio manager at Axa Investment Managers in Paris. “Investors are feeding on hope: hope that US rates will get down sooner and hope that China will launch a stimulus package to beef up consumption.

European equities ticked higher after the steepest losses in more than a week Monday. Ocado Group Plc was the best performer on the Stoxx 600, rising as much as 16% after the UK online grocer’s first-half earnings topped estimates.

 

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