Title: World shares hit three-week high on easing recession fears
Jul 20, 2022 04:31AM ET
Global stocks hit a three-week high on Wednesday as good corporate results in the US and the expected resumption of Russian gas supplies to Europe allayed recession fears, although the dollar held near a two-week low on lower expectations of a US interest rate hike.
After U.S. companies, including Netflix Inc., reported better-than-expected earnings overnight, the S&P 500 and Nasdaq futures were up more than 0.4 percent.
The S&P 500 gained 2.8 percent and the Nasdaq Composite gained 3.1 percent on Tuesday.
European stocks were steady, with Britain's FTSE 100 up 0.54%, supported by shares of oil and mining companies and shaken by data showing U.K. inflation hit a new 40-year high.
The euro gained 0.14 percent to $1.0236 after posting its biggest one-day percentage gain in a month the day before on rising bets on a rate hike.
The dollar remained steady at 106.67 against the currency index, near the two-week low reached in the previous session.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 1%, thanks to a 1.65% jump in resource-rich Australia and a 1.4% rise in Hong Kong stocks. Japan's Nikkei rose 2.67%.
Chinese stocks rose 0.34%, lagging gains in other markets, as the central bank kept its key lending rates unchanged amid a faltering economic recovery after the COVID lockout.
The Bank of Japan will also make a policy decision on Thursday, but is not expected to make any changes to its ultra-easy stance.
The closely watched portion of the U.S. yield curve remained inverted, with the two-year yield last reaching 3.1979%, down from the previous close of 3.2310%.
The yield on the benchmark ten-year Treasury note stood at 2.9874%, compared to Tuesday's close of 3.019%
The yield on the German 10-year bond fell four basis points to 1.235%.
Oil prices fell more than $1 a barrel today, pressured by global central banks' efforts to tame inflation and ahead of an expected rise in U.S. crude inventories as demand for the product weakens.
Crude oil in the United States fell 1.75 percent to $102.40 per barrel, while Brent crude oil fell 1.5 percent to $105.73 per barrel.
The spot price of gold fell 0.2 percent to $1,708 per ounce.