Closing summary
Stock markets are ending the week on a positive note, as investors regain their nerve despite the latest signs of economic slowdown.
In London, the FTSE 100 is now 112 points higher, or 1.6% up, at 7153, led by engineering firm Rolls-Royce (+5.5%), with airline group IAG (+4.4%) close behind.
The pound is clawing back from two-year lows, at $1.184, while the euro is back about parity with the dollar at $1.006.
Fiona Cincotta, Senior Financial Markets Analyst, at City Index, says:
Yesterday saw a disappointing start to the earnings season yesterday after JPMorgan and Morgan Stanley saw net income fall around 30%, missing forecasts. The fact that the banks are setting aside large sums for potential bad loans suggests that they are concerned about a possible recession.
Helping stocks higher today have been less hawkish comments from known Federal Reserve hawkish, which have helped the market pare back aggressive Fed hike bets.
With hawks Christopher Waller and James Bullard both supporting hiking rates by 75 basis points, not 100 bps that the market priced in after Wednesday’s red hot inflation.
Here are today’s main stories:
Have a lovely weekend. GW
US consumer sentiment has inched up this month, but remains near its lowest in decades.
The University of Michigan’s index of consumer morale rose to 51.1 this month, up from 50 in June, and better than hoped.
But as Surveys of Consumers Director Joanne Hsu explains, consumer sentiment was relatively unchanged, remaining near all-time lows.
Current assessments of personal finances continued to deteriorate, reaching its lowest point since 2011.
Buying conditions for durables adjusted upwards, owing both to consumers who cited easing supply constraints and those who believed that one should buy now to avoid future price increases, which would exacerbate inflation going forward.
University of Michigan preliminary July #consumer #confidence
— MacroTourist (@Gloeschi) July 15, 2022
prior: 50.0
consensus: 50.0
actual: 51.1
Still one of the lowest readings on record. #Recession secured. pic.twitter.com/TmxYvjZ9hN
