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Positive data on U.S. jobs helped boost global stocks on Thursday, a day after markets were ravaged by cryptocurrency sales and suggestions that policymakers were contemplating ending US-era support. crisis.
The S&P 500 rose 1% at lunchtime in New York, which launched the blue-chip index to achieve a three-day losing streak. The technology-focused Nasdaq Composite recovered 1.6%.
The Stoxx 600 index across the European continent closed 1.3%, while London’s FTSE 100 ended the session up 1% more.
New unemployment benefits in the United States fell to a new pandemic-era period last week, according to Labor Department data released Thursday, which indicates layoffs continued to decline , as some states were preparing to stop offering additional benefits.
The brightest news also came after Wednesday’s Federal Reserve minutes, which indicated that some policymakers thought talks about reducing the $ 120 billion bank in monthly bond purchases should begin as the pandemic gained strength.
Thursday’s equities rises on both sides of the Atlantic suggested a return to calm after a volatile day for Wednesday’s shares, which saw the S&P 500 index close at 0, 3% after falling to 3% and the Stoxx 600 lost 1.5%.
“The feeling of global risk seems to be stabilizing. . . after yesterday’s fears of cryptographic contagion caused a wide day of risk in the European and American markets, which were already in unstable terrain before the [Fed] minutes, ”JPMorgan analysts wrote.
In foreign currency, the pound rose 0.5 percent against the dollar to $ 1.4175, while the euro rose 0.4 percent to $ 1.2217. The US dollar, measured with a basket of peers, fell 0.4%.
Arnab Das, global market strategist at Invesco, said the overall picture pointed to a weaker dollar when the United States began to regain the mantle of China’s global growth engine through its expansionary policy.
Cryptocurrencies continued to face considerable volatility, following Chinese regulators signposted a possible crackdown Wednesday before launching its own digital currency. Bitcoin, which topped $ 60,000 last month, fell as much as 30 percent to a low of $ 30,101 on Wednesday. On Thursday, the volatile currency was trading at $ 39,227 per coin.
“Shares and cryptocurrencies have shown signs of foam over the past few months and had to be withdrawn,” said Richard Saperstein, chief investment officer of Treasury Partners.
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“It’s kind of a transition of the seasons,” said Roger Lee, head of Investec’s equity strategy in the UK, referring to Fed minutes. “Clearly there will be a tighter political outlook, but it is very difficult to predict how it will develop in equities.”
While index levels have not moved much, the sector movement had been deep over the past six weeks, he said. The technology sector had been among the victims, as inflationary pressure in the US increased.
Lee added that the time reduction is unlikely to be immediate, referring to similar measures taken in 2013: “They started talking about volume reduction in March; they didn’t start doing anything until December.”
Brent crude fell 0.8% to $ 66.11 a barrel after hitting $ 70 on Tuesday, just the third time since the pandemic began.
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