©Reuters. FILE PHOTO: Two men look at a panel with price data inside the Madrid Stock Exchange, Spain, June 22, 2012. REUTERS/Andrea Comas
By Herbert Lash
NEW YORK (Reuters) – Global stocks’ initial rally on Friday faded and the dollar strengthened, as investor concerns over the Federal Reserve’s tightening of monetary policy to curb inflation fueled fears of a recession and restored risk aversion.
* Stocks rose in Europe and Asia after China cut a key lending benchmark to bolster its ailing economy, helping lift Wall Street at the open.
* US Treasury bond yields fell for the third straight session on concerns about growth prospects. The yield on benchmark 10-year notes fell 5.6 basis points to 2.799%.
* Stock valuations have to go down and the expected return on investments, the discount rate, has to go up, said Stephen Auth of Federated Hermes (EPA:).
* “The market is starting to come to terms with the idea that this could be a new world where the discount rate on risky assets is no longer zero,” he said. “You’re seeing all these different areas of the market hit at the same time and it’s been very unsettling for investors.”
* Pan-European index gained 0.73%; MSCI’s measure of global shares fell 0.45%, marking its seventh consecutive weekly decline, its longest losing streak since its inception in 1990; and the main Wall Street indices fell around 2%.
* The dollar recouped some of its recent losses against the euro but remained on track for its worst week against the common currency since early February, amid questions from investors about whether the month-long rally was over by now. of the green ticket.
* The dollar has been supported in recent months by a flight to safety amid falling markets on fears of rising inflation, an aggressive Fed and the war in Ukraine.
* He was up 0.136%, and the euro was down 0.29% at $1.0555. The yen advanced 0.01% against its US pair, at 127.78 units.
* Crude oil prices were stable, little changed for the week, as the European Union’s planned ban on Russian oil balanced concerns that slowing economic growth could affect demand.
* Gold fell 0.1% to $1,840.71 an ounce as the dollar – the currency in which bullion is traded – rebounded from two-week lows. However, the safe-haven asset is likely to post its first weekly gain in the last five.
* In cryptocurrencies, he was down 4.28% at $28,994.71.
GRAPHICS: Global Stocks Lose $13 Trillion in Value https://tmsnrt.rs/3wHYYhq
Exchange rates in the world http://tmsnrt.rs/2hzquG7
Asset performance in the year http://tmsnrt.rs/2szi3CI
China cuts loan rates more than expected to revive real estate
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(Reporting by Samuel Indyk in London and Andrew Galbraith in Shanghai; edited in Spanish by Carlos Serrano)