Stocks rise as US retail data boosts confidence, Treasury yields and dollar also increase

From Investing.com: 2024-08-15 14:06:32

World stocks rose after strong U.S. retail sales data eased economic growth fears. Retail sales increased 1.0% last month, above forecasts, hinting at stable consumer spending. The report lessened chances of a 50 basis-point rate cut but indicated potential rate decrease in September. Bond yields rose while the dollar gained against major currencies.

Equity markets reacted positively to the economic resilience, with MSCI’s world share index rising 1.1%. Treasury yields spiked with the benchmark reaching 3.9321%. The dollar also saw a 0.4% gain against major currencies. Euro and yen weakened against the dollar. Pan-European index rose, but analysts warned of volatility ahead.

Wall Street’s fear gauge eased while U.S. rates have held at 5.25%-5.5%. A speculative trade involved borrowing yen to buy U.S. stocks, which caused market chaos when disturbed. Market correction is expected, supported by the U.S. economy’s 0.6% growth rate in Q2. Gold price rose due to speculation on lower U.S. rates, and oil markets strengthened.



Read more at Investing.com: Stocks gain, Treasury yields jump as US retail data reassures By Reuters