A global share gauge pushed toward the highest level since early June, after a US rally triggered by earnings and robust economic data. US futures fluctuated as traders weighed how much further the revival in equities from bear-market lows can go. The dollar was little changed.from Moderna and PayPal as well as surprise US service-sector growth. Almost 75% of US firms have so far beaten earnings estimates. Jitters over US-China ties faded after House Speaker Nancy Pelosi departed Taiwan.
Global stocks have now rebounded some 10% from a June low, reducing year-to-date losses to about 15%. The big debate is whether that points to complacency given the bond market is flashing a warning of an economic slowdown. “The volatility is not over and a lot of data is still out there, it’s still going to matter,” Ann Miletti, head of active equity at Allspring Global Investments, said on Bloomberg Television. “I would still focus on quality here because there is a lot of choppiness to come, a lot of answers we still need.”
Taiwan tension remains among the uncertainties. China is due to kick off military drills starting at noon local time to illustrate its ability to surround the island in a show of force following Pelosi’s trip. Later in Europe, the UK is set to add to a global wave of monetary tightening that’s putting the brakes on the world economy. The Bank of England is expected to join some 70 other institutions around the world in delivering a half-point increase in borrowing costs.Cleveland Fed president Loretta Mester due to speak, ThursdayS&P 500 futures were down 0.1% as of 12:00 p.m. in Tokyo. The S&P 500 rose 1.6%South Korea’s Kospi index rose 0.3%Australia’s S&P/ASX 200 index increased 0.
Source: News Formal (newsformal.com)