World stocks have rebounded since the dreaded first half of 2022. This is because expectations for rising interest rates have eased and bright earnings from the Big Tech Group this month have spurred widespread backlash.
The FTSE All-World Index for developed and emerging market shares surged more than 6% in July.This week, the major equity sectors in the United States Economic slowdown..
Strong performance in July saw the global stock index fall by about 20% Worst performance in the first half For the US Stock Market of $ 44 trillion in over 50 years.
Bailey Wakefield, Multi-Asset Fund Manager at Aviva Investors, said:
“Investors are also betting a lot of the negatives [economic] News has been priced that the Federal Reserve may be less aggressive in tightening monetary policy and there is stock market enthusiasm for slowing inflation and lowering rate hikes. ”
Amazon shares rose 12% on Friday at noon trading in New York and rose 29% in July after the e-commerce group. Exceed analysts’ quarterly earnings forecast The good performance of the cloud computing business has given us a bright outlook for the rest of the year.
Alphabet, the parent company of Microsoft, Apple and Google, has all taken a more confident outlook than investors expected, lifting the US tech sector, which has a significant weight in the global market.
According to Bank of America, EPFR-tracked U.S. equity funds recorded the largest inflows in the last six weeks, with a net of $ 9.5 billion, as a sign of how investor sentiment is brightening. I got a new investment.
High-end S & P 500 stocks surged more than 8% this month, with 86% of index-listed stocks rising since the end of June, according to FactSet data. Beyond the Atlantic, the STOXX 600 in Europe increased by about 8 percent.
The Fed, the world’s most influential central bank, raised interest rates significantly in the first seven months of the year.But Thursday’s data shows that the US economy Contract for 2 consecutive quartersSparkling hopes that the worst inflation cycle in 40 years will be eased and the Fed could delay policy tightening.
Rebecca Chesworth, Senior Equity Strategist at State Street’s SPDRETF business, said:
“So they showed signs that inflation would decrease and be bullish on it.”
Friday futures prices meant that the Fed’s main fund interest rate peaked at 3.29 percent in February next year, from the current 2.25 to 2.5 percent range. By mid-June, such forecasts reached 3.9%.
However, Barclays strategists warned that the strong performance of stocks and bonds in July “could be returned to Earth” as inflation remains rising as a result of Russia’s invasion of Ukraine.
“The basic outlook remains cloudy due to the dramatic slowdown in the economy and soaring energy prices,” they said in a note to customers. “I feel optimistic to believe that the Fed can turn around quickly.”