NEW YORK (AP) — Wall Street stocks are slightly higher, led by big bank gains, after several banks reported better-than-expected results. Healthcare companies also outperformed others in the market after insurance giant UnitedHealth reported solid earnings. The S&P 500 rose 0.2% in the early hours of Friday and the Dow Jones Industrial Average nearly doubled that. Yields on British government bonds fell after a bewildered Prime Minister Liz Truss was replaced as finance minister.
This is breaking news. Here’s AP’s previous story:
BEIJING (AP) — Global stock markets surged Friday after Wall Street recovered from a recession sparked by higher-than-expected inflation.
Market benchmarks in London and Paris rose more than 1%. Tokyo surged his 3.3%, marking his biggest one-day rise in seven months. Hong Kong and Shanghai also rose. Benchmark US crude rose nearly $2 a barrel.
On Wall Street, futures on the benchmark S&P 500 Index fell 0.4%.
Wall Street plunged Thursday after the US CPI rose 8.2% in September. However, the S&P 500 has rebounded to his 2.6%, marking its biggest daily gain in two and a half years.
Mizuho Bank’s Vishnu Varasan said in a note that the “sticker shock” of inflation was “disrespected”.
The Federal Reserve (Fed) and central banks in Europe and Asia have raised interest rates by unusually wide margins this year in an effort to curb inflation at its highest level in decades. Traders fear the global economy could slip into recession.
In early trading, London’s FTSE 100 rose 0.6% to 6,894.30 and Paris’ CAC 40 rose 0.8% to 5,925.44. Frankfurt’s DAX rose 0.5% to 12,420.24.
On Wall Street, Dow Jones Industrial Average futures fell 0.3%.
The Dow rose 2.8% on Thursday while the Nasdaq Composite rose 2.2%.
Thursday’s CPI report showed that inflation was more widespread across the economy.
The consumer price index fell from an 8.3% gain in August. But core inflation, which strips out volatile food and energy costs to show longer-term trends, accelerated to 6.6% from 6.3% in August. September prices rose 0.6% from the previous month.
This seems likely to reinforce the Fed’s plans for even more significant rate hikes. Most traders had already expected a rise of up to three-quarters of a percentage point, three times his normal margin, at the next U.S. central bank meeting in November.
Thursday’s data has led some investors to expect another rate hike of the same magnitude in December.
In Asia, Tokyo’s Nikkei 225 jumped to 27,090.76, while Hong Kong’s Hang Seng rose 1.2% to 16,587.69.
Official data showed September inflation rose to a 29-month high of 2.8% from 2.5% the previous month, driving the Shanghai Composite Index up 1.8% to 3,071.99. That’s below the official cap of 3%, leaving Beijing with room to stimulate weaker economic growth.
Seoul’s Kospi rose 2.3% to 2,212.55 and Sydney’s S&P-ASX 200 rose 1.8% to 6,758.80.When
India’s Sensex rose 1.8% to 58,257.86. Markets in New Zealand and Southeast Asia also rose.
In the energy market, US benchmark crude rose $1.38 to $88.65 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used for international crude pricing, fell 4 cents to $94.53 a barrel in London.
The dollar rose to 147.59 from 147.17 on Thursday. The dollar is at his 32-year high against the Japanese currency.
The euro fell from 97.85 cents to 97.51 cents.
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