The Stock Europe 600 Index climbed 0.3%, with energy shares getting a boost from surging commodities prices.
European stocks rose while U.S. equity futures drifted on Wednesday as the tussle between economic optimism and inflation concern continues to play out in markets. The dollar ticked up.
The Stoxx Europe 600 Index climbed 0.3%, with energy shares getting a boost from surging commodities prices. Contracts on the S&P 500 and Nasdaq 100 were little changed. Shares in Hong Kong and China retreated, while Japanese stocks outperformed and robust economic figures boosted Australian equities.
Oil extended gains after closing at the highest since October 2018, with OPEC+ providing an upbeat demand assessment and the prospect of a speedy return of Iranian barrels waning. The Turkish lira fell to a record low against the greenback after President Recep Tayyip Erdogan renewed calls for lower interest rates. Treasuries were little changed.
As economies continue to claw their way back from the pandemic, traders are looking for fresh signals on whether that growth translates into inflation that ultimately prompts central banks to withdraw support. All eyes turn to Friday’s U.S. payrolls data for a clearer view on the state of the labor market -- and hints on whether the Federal Reserve is likely to scale back its monthly asset purchases.
Fed Governor Lael Brainard said on Tuesday there are risks on both sides of monetary policy as the U.S. economy surges ahead while millions of people are unemployed.
“Investors would see a surge in payrolls growth as a sign that the Fed is more likely to move,” said Lauren Goodwin, portfolio strategist at New York Life Investments. - Published by The Beyond News (Business).