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HomeNationalMarkets rise on better-than-expected growth in the US MIGMG News

Markets rise on better-than-expected growth in the US MIGMG News

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Migmg news

Stocks rose on Thursday as US data showed the world’s biggest economy grew at a slower pace in 2022 but ended the year on a stronger note.

Stocks in Paris, Frankfurt and London were higher in afternoon trading, with the Dow Jones Industrial Average opening higher.

US gross domestic product beat expectations to grow at an annual rate of 2.9 percent in the fourth quarter, official data showed.

It marked a second consecutive quarter of growth after two rounds of contraction.

For 2022 as a whole, the US economy grew at a slower pace than the previous year, expanding by 2.1 percent, the Commerce Department said.

“The weaker GDP print compared to the previous reading means the economy is slowing, but the above-forecast number will also ease recession fears,” said Fawad Razakzada, market analyst at City Index and FOREX.com.

“They call this the ‘golden nipples’ scenario.”

Investors also closely watched the latest earnings from US giants American Airlines, Intel, Mastercard and Visa, as well as French luxury goods group LVMH.

Oil rose on hopes of increased Chinese demand after the country lifted Covid restrictions, while the dollar held steady.

“It will open higher for stocks rooted in a rash of earnings and better-than-expected economic data,” said Patrick O’Hare, an analyst at Briefing.com.

“It’s a good combination,” he added.

Fed Clock

Investors are also focused on the next move by the US Federal Reserve, which has raised rates since last year in an attempt to tame galloping inflation.

The Federal Reserve will make its latest policy decision next week after slowing the pace of interest rate hikes in December following four one-off 0.75 percentage point hikes.

Given that the Fed will meet soon, the U.S. growth numbers were not expected to trigger a “massive market response,” Razakzada said.

Speculation has been building in recent weeks that the bank could take its foot off the pedal as data shows inflation falling faster than expected and other indicators suggest last year’s tightening has taken hold in the economy.

And while there is some concern that the world’s largest economy could slip into recession, hope is growing that it could achieve a so-called soft landing.

Traders are also keeping an eye on the Fed’s preferred inflation gauge due on Friday.

In Asia on Thursday, Hong Kong again led the way to hit an 11-month high, helped by hopes that China’s reopening will fuel a strong recovery this year.

But uneven earnings from tech giants largely kept sentiment in check.

However, Asia continued to improve after a strong start to the year.

Key figures around 1440 GMT

London – FTSE 100: Up 0.3 percent to 7,769.97 points

Frankfurt – DAX: Up 0.2 percent to 15,114.79

Paris – CAC 40: UP 0.9 percent at 7,107.48

EURO STOXX 50: UP 0.7 percent at 4,176.47

New York – Dow: UP 0.5 percent to 33,903.58

Hong Kong – Hang Seng: UP 2.4 percent to 22,566.78 (close)

Tokyo – Nikkei 225: DOWN 0.1 percent at 27,362.75 (close)

Shanghai – Composite: Closed for holiday

EUR/USD: DOWN at $1.0898 from $1.0916 on Wednesday

Pound/Dollar: DOWN at $1.2399 from $1.2403

EUR/GBP: DOWN at 87.88 pence from 88.01 pence

USD/JPY: UP at ¥130.08 from ¥129.59

Brent North Sea crude: 2.2 percent higher at $87.98 a barrel

West Texas Intermediate: Up 2.4 percent to $82.06 a barrel

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