Dollar pause, China economy support pledge lift markets

Dollar pause, China economy support pledge lift markets

A dollar pullback from 20-year highs and Chinese authorities’ pledge to support economic growth offered respite to battered equity markets on Friday, though Wall Street remained poised to open lower after lacklustre earnings from retail giant Amazon. World stocks remain on course for their worst month since March 2020 with a 5.8% loss, and while Asian and European stocks clawed their way higher, Nasdaq futures were down 1% by 1020 GMT and S&P 500 futures fell 0.7%. Frankfurt-listed shares in Amazon fell 8% after it became the latest US corporate giant to blame rising costs for pressuring earnings. April has been a dramatic month for global markets, with an unprecedented 5% dollar surge, driven by expectations of an aggressive U.S. rate hike cycle, as well as safe-haven flows from investors concerned about the Ukraine war and signs of economic slowdown. The dollar’s index is set for its biggest monthly rise in seven years but eased 0.6% on Friday, snapping a four-day streak of gains against a basket of currencies. That allowed the euro and the yen, which have hit five-year and 20-year lows respectively on Thursday, to claw back some losses “Perhaps the dollar crescendo has peaked,” Colin Asher, senior