Strong US earnings lift global equities amid inflation, geopolitical concerns
World stocks rallied on Friday as investors turned their eyes toward corporate earnings and ignored geopolitical turmoil and Federal Reserve tightening concerns
World stocks rallied on Friday as investors turned their eyes toward corporate earnings and ignored geopolitical turmoil and Federal Reserve tightening concerns.
Strong earnings from tech firms including Apple, which rose nearly 7% after reporting record sales over the holiday quarter, buoyed U.S. markets during the session.
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https://www.reuters.com/world/europe/exclusive-eu-eyes-lower-bar-force-f... foreign banks based in the EU may have to hold more capital and liquidity under revisions to rules being considered by the bloc`s member states.In Italy, bond yields rose as its parliament struggled to elect a new president.
(Graphic on, Global bond yields are rising: https://fingfx.thomsonreuters.com/gfx/mkt/gdpzynqqovw/Pasted%20image%201...)
OIL PRESSURE
Oil prices reached seven-year highs after the inflation data and as geopolitical tensions continue to raise concerns that the Ukraine crisis could disrupt energy markets. [O/R]
U.S. President Joe Biden and his EU counterpart Ursula von der Leyen pledged to cooperate on guaranteeing the energy security of Europe and Ukraine amid the standoff triggered by Russia amassing troops at Ukraine`s border.
U.S. crude was up 0.84% at $87.34 per barrel and Brent was at 1.56%, at $90.73.
Investors cautiously start to buy U.S. crude when prices fall on supply disruption concerns due to rising geopolitical tensions, said Tatsufumi Okoshi, senior economist at Nomura Securities.
"The market expects supply will stay tight as OPEC+ is seen to keep the existing policy of gradual increase in production," he said.
The market is focusing on a Feb. 2 meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC+. It is likely to stick with a planned rise in its oil output target for March, several sources in the group told Reuters.
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