Lingering inflation keeps Wall Street mixed to end brutal quarter



(Updates prices for U.S. morning trading)

*

U.S. stocks make timid recovery as brutal Q3 comes to an end

*

Dollar flat, sterling ticks up after week of turmoil

*

Treasury yields little changed

*

Oil prices retreat

By Lawrence Delevingne and Elizabeth Howcroft

Sept 30 (Reuters) - Wall Street and global stocks made little ground on Friday, with government bond yields and the dollar holding near recent peaks, as higher-than-expected inflation continued to weigh on markets.

Fresh personal consumption expenditures (PCE) price index data, tracked by the U.S. Federal Reserve as it considers more interest rate hikes, showed a rise of 0.3% last month after dipping 0.1% in July. Euro zone inflation also hit a record high of 10% in September, surpassing forecasts for a 9.7% rise, flash inflation data showed.

Fed Vice Chair Lael Brainard said on Friday the U.S. central bank would need to maintain higher interest rates for some time as part of its effort tame inflation and must guard against lowering rates prematurely.

Quincy Krosby, Chief Global Strategist for LPL Financial in Charlottesville, Virginia, said the new price index data "did little to assuage fears that the campaign to curtail inflation is working as quickly as hoped by the market".

She added that end of the quarter re-balancing "will play a significant role in how the market ends a particularly volatile week".

U.S. stocks ticked up in choppy trading. The Dow Jones Industrial Average .DJI rose 0.39% to 29,338.84, the S&P 500 .SPX gained 0.77%, to 3,668.5 and the Nasdaq Composite .IXIC added 1.26% to 10,872.30.

The action Friday caps a week of global market turmoil in which stocks and currency markets already rocked by recession fears were sapped by dollar strength.

Asian shares fell earlier on Friday, on track for their largest monthly loss since the start of the pandemic in 2020.

European shares saw some recovery, although they remained on track for a third consecutive quarter of losses as markets worried about the impact on global growth of central banks hiking interest rates to counter inflation. Europe's STOXX 600 .STOXX was last up about 1%.

The MSCI world equity index .MIWD00000PUS , which tracks shares in 47 countries, rose 0.3%.

David Madden, market analyst at Equiti Capital, said a pullback in government bond yields enabled stocks to edge up, but this was unlikely to be the start of a longer recovery.

"The big picture hasn't changed: yields are an upward trend, inflation is still really high, interest rates are set to continue on the path of higher rates," he said.

European government bond yields fell, with Germany's 10-year yield down 7 basis points at 2.134%, compared to Wednesday's peak of 2.352%, which was an 11-year high DE10YT=RR .

Some U.S. Treasury yields also pulled back on Friday.

The yield on 10-year Treasury notes US10YT=RR was down 0.3 basis points to 3.744% and the two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, was down 0.3 basis points at 4.167%. 30-year Treasury bonds US30YT=RR rose 2.7 basis points to 3.720%.

Currency markets calmed, with the dollar index down 0.2% on the day .DXY after hitting a 20-year high on Wednesday. The dollar index has risen about 17% this year.

The British pound, which had been driven to all-time lows by a combination of dollar strength and the government's plans for tax cuts funded by borrowing, rose 0.3% on the day. It is still on track for its worst quarter versus the dollar since 2008 GBP=D3 .

The Bank of England would not raise interest rates before its next scheduled policy announcement on Nov. 3 despite a plummet in sterling but would make big moves in November and December, a Reuters poll predicted.

European Central Bank policymakers have also voiced more support for a large rate hike. COMMODITIES U.S. crude CLc1 recently fell 1.43% to $80.07 per barrel and Brent LCOc1 was at $87.92, down 0.64% on the day. Oil had been on track for its first weekly gain in five on Friday, underpinned by the possibility that OPEC+ will agree to cut crude output

Gold prices, which gained on Friday as the dollar weakened, were still on course for their worst quarter since March last year as central banks worldwide stick with aggressive monetary policies. Spot gold XAU= added 0.8% to $1,673.86 an ounce; U.S. gold futures GCc1 gained 0.86% to $1,672.70 an ounce.



Global FX performance Link
Global asset performance Link
Global markets - Q3 2022 Link



Reporting by Lawrence Delevingne in Boston and Elizabeth
Howcroft in London. Editing by Mark Potter, Angus MacSwan,
William Maclean and Alex Richardson



Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.

Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.

Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.

Utilizamos cookies para ofrecerle una mejor experiencia en nuestra web. Conozca más o cambie sus ajustes de cookies.

Advertencia de riesgo: Los CFD son un producto difícil de comprender y la CNMV cree que no es adecuado para inversores minoristas dada su complejidad y riesgo. Por favor, lea y asegúrese de que comprende completamente nuestra Declaración de riesgos.