Global stocks rally, dollar drops as US inflation data spurs optimism | The Business Standard
Skip to main content
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
June 19, 2025

Sign In
Subscribe
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JUNE 19, 2025
Global stocks rally, dollar drops as US inflation data spurs optimism

Global Economy

Reuters
15 November, 2022, 10:20 pm
Last modified: 15 November, 2022, 10:23 pm

Related News

  • Stocks and dollar fall as Trump's Fed attacks jangle nerves
  • Shares fall in Asia as Nvidia curbs fan worries, gold hits record
  • US consumer prices post largest increase in nearly 1-1/2 years in January
  • Higher gas and rents keep US inflation elevated, likely delaying Fed rate cuts
  • US dollar surges to new 34-year high vs yen after hotter-than-expected inflation data

Global stocks rally, dollar drops as US inflation data spurs optimism

Reuters
15 November, 2022, 10:20 pm
Last modified: 15 November, 2022, 10:23 pm
Global stocks rally, dollar drops as US inflation data spurs optimism

Global stocks rallied as the dollar and bond yields slid further on Tuesday after more data signaled US inflation was coming off its peak, while an improving outlook for China's economy gave investors plenty to cheer.

Currencies gained against the greenback as the euro, yen and sterling all rose and the Canadian dollar hit an eight-week high after the Labor Department reported US producer prices increased less than expected in October.

Spot gold extended gains, euro zone and Treasury yields slid further and stock volatility in Europe (.V2TX) hit a fresh 10-month low as the US producer price index (PPI) for final demand rose 0.2%. In the 12 months through October, PPI increased 8.0 after climbing 8.4% the prior month.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Economists polled by Reuters had forecast monthly PPI rising 0.4% and advancing 8.3% year-on-year.

The reading was better than expected and bolstered the risk-off mood sparked last week by cooler-than-expected data on US consumer prices that gave investors hope the Federal Reserve can curb its aggressive interest rate hikes to tame inflation.

"The market is sniffing out the end of the Fed rate hike cycle," said Peter Duffy, chief investment officer of credit at Penn Capital Management Co LLC in Philadelphia. "The market is taking a big sigh of relief because the Fed has had to talk so tough. As soon as these numbers can start coming down, even if it's a slow walkdown in inflation, the market will be relieved."

Fed funds futures showed a further drop from above 5% last week in expectations for the US central bank's target rate, pricing in a peak at 4.88% next May and June. The likelihood the Fed hikes 50 basis points in December rose to a 91% probability, up from 71.5% last week.

MSCI's gauge of stocks across the globe (.MIWD00000PUS) gained 1.55%, while its emerging markets index (.MSCIEF) rose 2.35%.

 

On Wall Street, the Dow Jones Industrial Average (.DJI) rose 1.09%, the S&P 500 (.SPX) gained 1.64% and the Nasdaq Composite (.IXIC) added 2.44%.

Big moves in the dollar, among other assets, suggested investors were dramaticly changing their positions after the CPI and PPI reports, said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.

"The pace and the momentum speaks to a major turn, and the euphoria!" he said. "It's like a big push on an open door. The pull-back we've seen, the dollar sells off last week sharply, some of the currencies were three standard deviation moves."

The euro up 0.53% to $1.038 and the yen strengthened 0.48% versus the dollar at 139.22.

The benchmark 10-year Treasury yield fell to a six-week low of 3.758% and was last down 5.5 basis points to 3.812%. The 10-year has fallen 30 basis points since Thursday.

Two-year yields , which reflect interest rate expectations, fell as low as 4.326%.

"Markets are driven by two factors at the moment. One is optimism that inflation data in the US is peaking out ... and on top of that we've had growing optimism that we could see China adopt more growth-friendly policies," said Lee Hardman, currency analyst at MUFG in London.

Chinese and Hong Kong stocks rallied overnight as investors digested China's COVID-19 policy adjustments, a property sector rescue package, and a cooling in tensions between the US and China. Beijing last week eased some of its strict COVID rules, though there has been a sharp increase in new infections in some cities this week.

Hong Kong's Hang Seng Index (.HSI) surged 4.11% overnight. The index is up nearly 25% for the month while China's CSI 300 (.CSI300) has gained 10% in that time.

US President Joe Biden and Chinese President Xi Jinping held a three-hour meeting on Monday in Bali on the sidelines of the G20 gathering. Investors welcomed the two countries' pledge of more frequent communications.

The market is reading that the Biden-Xi meeting is a watershed, but the US still sanctions Chinese semiconductors and Canada is getting tougher on Chinese investments in Canadian mining and metals sectors, Chandler said.

Data out on Tuesday showed that the British unemployment rate rose in September. German business sentiment saw a stronger-than-expected rise in the closely watched ZEW survey.

US crude fell 1.25% to $84.80 per barrel and Brent was at $92.09, down 1.13% on the day.

Bitcoin rose 2.69% to $17,036.00, but remained around 20% lower for the month. The collapsed FTX crypto exchange outlined a "severe liquidity crisis" in bankruptcy filings released on Tuesday.

Top News / World+Biz

Global stock / US inflation

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Pvt sector's foreign loan rises by $454m on stable exchange rate, reserve in three months
    Pvt sector's foreign loan rises by $454m on stable exchange rate, reserve in three months
  • An anti-missile system operates as missiles are launched from Iran, as seen from Tel Aviv, Israel, 18 June 2025. Photo: Reuters
    Khamenei rejects Trump's demand for surrender, Trump says 'good luck'
  • Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?
    Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?

MOST VIEWED

  • Infograph: TBS
    Govt to ease loan rules to help foreign firms expand in Bangladesh
  • Google Pay. Photo: Collected
    Google Pay coming to Bangladesh next week
  • Logo of Beximco Group. Photo: Collected
    Beximco defaults on €33m in Germany, Deshbandhu owes Czech bank €4m
  • Global map showing nuclear weapon inventories by country as of January 2025, including deployed, stored, and retired warheads. Source: SIPRI
    How Israel's secret nuclear arsenal comes under spotlight amid attacks on Iran
  • The Kallyanpur Canal is burdened with more than 600,000 kilograms of waste every month. Photo: Courtesy
    Kallyanpur canal project shows how to combat plastic pollution in Dhaka
  • The India-Bangladesh integrated checkpost in Fulbari. Photo: Passang Yolmo via Telegraph India
    Import of boulders from Bhutan to Bangladesh stopped by Indian transporters in Fulbari

Related News

  • Stocks and dollar fall as Trump's Fed attacks jangle nerves
  • Shares fall in Asia as Nvidia curbs fan worries, gold hits record
  • US consumer prices post largest increase in nearly 1-1/2 years in January
  • Higher gas and rents keep US inflation elevated, likely delaying Fed rate cuts
  • US dollar surges to new 34-year high vs yen after hotter-than-expected inflation data

Features

Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?

Evacuation of Bangladeshis: Where do they go next from conflict-ridden Iran?

3h | Panorama
The Kallyanpur Canal is burdened with more than 600,000 kilograms of waste every month. Photo: Courtesy

Kallyanpur canal project shows how to combat plastic pollution in Dhaka

1d | Panorama
The GLS600 overall has a curvaceous nature, with seamless blends across every panel. PHOTO: Arfin Kazi

Mercedes Maybach GLS600: Definitive Luxury

2d | Wheels
Renowned authors Imdadul Haque Milon, Mohit Kamal, and poet–children’s writer Rashed Rouf seen at Current Book Centre, alongside the store's proprietor, Shahin. Photo: Collected

From ‘Screen and Culture’ to ‘Current Book House’: Chattogram’s oldest surviving bookstore

3d | Panorama

More Videos from TBS

What's going on in Netanyahu's head behind the regime change story?

What's going on in Netanyahu's head behind the regime change story?

3h | TBS World
The type of bomb the US could use if Trump attacks Iran

The type of bomb the US could use if Trump attacks Iran

3h | TBS World
Why is Fordow Nuclear Facility at the Center of Trump’s Deliberations?

Why is Fordow Nuclear Facility at the Center of Trump’s Deliberations?

5h | TBS World
AI will replace jobs at tech giant: Amazon CEO

AI will replace jobs at tech giant: Amazon CEO

6h | Others
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net