Stocks rise for fourth straight session, dollar gains as earnings, ECB watches

  • US stocks rise, European stocks close lower
  • The dollar rebounds from its lowest level in two weeks
  • Oil down after US inventory data

NEW YORK, July 20 (Reuters) – The gauge for global stocks rose for the fourth straight day in choppy trading on Wednesday as investors assessed the early stages of the U.S. corporate earnings season, while the dollar weakened. was appreciating ahead of a rate decision by the European Central Bank on Thursday.

On Wall Street, US stocks were up, driven by gains on the Nasdaq, with growth stocks supported by a positive outlook from Netflix (NFLX.O), which jumped 6.26%. Read more

With 60 S&P 500 companies reporting earnings, 78.3% beat analysts’ expectations, according to Refinitiv data, falling slightly below the 81% beat rate over the past four quarters but well above. above the 66% rate since 1994.

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“Right now, investors seem more willing to reward than punish because there’s already a lot of pessimism in traders’ sentiment,” said Steve Sosnick, chief strategist at Interactive Brokers.

“If companies can post decent results, it could make people more willing to buy than sell.”

The Dow Jones Industrial Average (.DJI) fell 27.87 points, or 0.09%, to 31,799.18; the S&P 500 (.SPX) gained 16.4 points, or 0.42%, to 3,953.09; and the Nasdaq Composite (.IXIC) added 152.77 points, or 1.3%, to 11,865.92.

Meanwhile, the U.S. dollar was higher after three straight days of declines that left the greenback at its lowest level in two weeks as expectations for upcoming ECB and U.S. Federal Reserve rate hikes changed. , with market pricing in a 50bps bigger hike from the ECB and Fed hike 75bps as they try to fight inflation.

As recently as last week, expectations were for a 25 basis point hike from the ECB while the Fed would likely hike rates by 100 basis points.

The pan-European STOXX 600 index (.STOXX) lost 0.21% and the MSCI gauge of stocks across the world (.MIWD00000PUS) gained 0.39%. The four straight days of gains took the MSCI index to a three-week high of 617.30 while European stocks snapped a three-game winning streak.

European stocks ended lower as uncertainty swirled around gas supplies to the region and the future of Italian Prime Minister Mario Draghi. Draghi won a no-confidence motion after markets closed in the Senate upper house, but three main coalition parties refused to participate in the vote, derailing his administration. Read more

The European Union on Wednesday asked member states to reduce their gas consumption by 15% until March as an emergency measure after President Vladimir Putin warned that Russian supplies sent via the largest pipeline to the Europe could be further reduced and could even stop.

The dollar index rose 0.459% as the euro fell 0.58% to $1.0165.

The Japanese yen weakened 0.04% against the greenback at 138.27 to the dollar, while the pound last traded at $1.1961, down 0.28% on the day.

In addition to the ECB, the Bank of Japan will also announce a policy decision on Thursday, but is not expected to make any changes to its ultra-loose monetary policy.

Benchmark 10-year notes last fell 5/32 to 3.0359%, down from 3.019% on Tuesday night.

After a volatile session on Tuesday, oil prices fell after U.S. government data showed lower demand for gasoline during the peak summer driving season and interest rate hikes by central banks to tackling inflation have heightened concerns about a slowing economy and reduced energy demand. Read more

U.S. crude recently fell 2.07% to $102.06 a barrel and Brent to $106.43, down 0.86% on the day.

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Additional reporting by Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; edited by Jonathan Oatis

Our standards: The Thomson Reuters Trust Principles.

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