International Business: Global stocks rebound amid strong US earnings – Gulf Digital News

International Business: Global stocks rebound amid strong US earnings – Gulf Digital News

WASHINGTON: Global stocks staged a recovery yesterday as strong earnings from US technology companies and Opec+ plans for moderate oil output helped to counter jitters over the pace of central banks’ interest rate hikes.

The STOXX index of 600 European companies rose 0.45 per cent, up for a third straight session, to recoup nearly half its losses during January’s global rout in shares.

Crude oil eyed seven-year highs and the dollar eased, while on Wall Street, the Dow Jones Industrial Average rose 0.01pc and the S&P 500 gained 0.31pc.

The tech-heavy Nasdaq Composite dropped 0.14pc, after earlier gains.

Pleasing earnings from chipmaker Advanced Micro Devices also bolstered sentiment in the tech sector.

But record high euro zone inflation of 5.1pc in January was a surprise, defying expectations of a drop to 4.4pc, sending German government bond yields to multi-year highs and the euro surging.

The ECB has insisted that price growth is temporary and benign, but markets will be looking for any change in tone when it meets today.

“The unexpectedly high inflation rate is a slap in the face for the ECB. It will have to finally recognize the massively increased inflation risks and take its foot off the pedal of monetary policy,” said Joerg