Sat, 03 Jun 2023

American stock markets surge ahead, dollar too in demand

Lola Evans
30 Mar 2023, 06:09 GMT+10

NEW YORK, New York - U.S. stocks and the dollar made solid gains on Wednesday as banking sector fears continued to recede. The greenback benefited from rising bond yields.

"Every day that something doesn't break is a good day," Ed Yardeni, president of Yardeni Research told CNBC Wednesday. "The market keeps waiting for something else to break but Silicon Valley Bank was that something," he added.

Shares in Micron boosted stocks with a rise of 7.19 percent, a gain of $4.26 to $63.54 per share.

"We had a couple of good reads into the economy from a couple of companies," King Lip, chief investment strategist at BakerAvenue Wealth Management in San Francisco, told Reuters news agency Wednesday.

"The big one is Micron Technologies. Micron is sort of a microcosm of the global economy because their chips go into so many different industries and sectors. If they are optimistic about things in terms of orders, that means the overall economy is doing well."

The tech-laden Nasdaq Composite accelerated 210.16 points or 1.79 percent to 11,926.24.

The Standard and Poor's 500 increased 56.54 points or 1.42 percent to 4,027.81.

The Dow Jones industrials rallied 323.35 points or 1.00 percent to 32,717.60.

The world foreign exchange markets saw the U.S. dollar recover from its recent bout of weakness. The euro slipped 0.03 percent to 1.0840, approaching the U.S. close Wednesday.

The Japanese yen pair dived a hefty 1.54 percent to 132.82.

The British pound weakened to 1.2314, down by 0.22 percent.

The Swiss franc pair inched down 0.03 percent to 0.9189

The Australian dollar fell 0.41 percent to 0.6680, while across the Tasman, the New Zealand dollar dipped 0.50 percent to 0.6221.

The Canadian dollar, going against the trend, edged up 0.25 percent to 1.3564.

Global stock markets closed on a mixed note on Wednesday, with some indexes posting gains and others registering losses. The FTSE 100 in London rose by 1.07 percent, the DAX in Frankfurt climbed 1.23 percent, and the CAC 40 in Paris, France increased by 1.39 percent.

Meanwhile, the Euronext 100 Index and the BEL 20 in Belgium both rose by 1.51 percent

In Russia, the MOEX Russia Index declined by 0.19 percent.

In Asia, the Nikkei 225 in Tokyo gained 1.33 percent, while the Hang Seng Index in Hong Kong surged 2.06 percent. The Kospi Composite Index in South Korea also rose by 0.37 percent Wednesday.

However, in China, the SSE Composite Index in Shanghai fell by 0.16 percent, while the Shenzhen Index edged up by only 0.13 percent.

The FTSE Bursa Malaysia KLCI in Kuala Lumpur gained 0.80 percent. The S&P BSE Sensex in India increased by 0.60 percent, while the IDX Composite in Indonesia rose by 1.17 percent.

In Australia, the S&P/ASX 200 and the All Ordinaries both edged up by 0.23 percent, while the STI Index in Singapore gained 0.22 percent.

Investors' sentiment was buoyed by positive economic data from the U.S. and China, which suggested that the global economic recovery was gaining momentum. The mixed performance of global stock markets reflected the uncertainty and volatility in the markets, as investors weighed the positive news against concerns over rising inflation and potential interest rate hikes by central banks.

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