Growth stocks are back on track! Jump in to get the fresh stock market outlook!
European equities surge
On Thursday, European equities joined an overnight jump on Wall Street after dovish remarks from Fed Chair Jerome Powell improved investor sentiment towards stock markets notwithstanding uncertainty over a probable escalation in the China-US trade clash.
The STOXX 600 managed to ascend by up to 0.6%, with all key bourses as well as most sectors staying in positive territory.
Market participants are assured that the risk of fast-rising interest rates affecting the American economy along with the stock market is currently on the downside after Powell told that monetary policy rate is currently below estimates of a level, which neither brakes nor backs a healthy economy.
The new-found optimism showed up after sell-offs in February and October had helped markets experts to question the overall sustainability of the longest bull marathon in recent history.
According to a Reuters poll disclosed on Thursday, most experts are assured that the uptrend isn't over just yet, while more than 40% of analysts told that the current trading marathon has more than a year to last.
Cyclical and tech equities that have been some of the most affected in the recent sell-off, led futures up across the continent on Thursday morning.
Deutsche Bank demonstrated a sudden 4% sink after it was reported that on money laundering allegations up to 170 criminal police officers, tax inspectors, and prosecutors searched six of its offices in Frankfurt.
In addition to this, UK financial institutions made moderate moves. HSBC went down by 0.3%, while Lloyds managed to ascend by 1%, after all seven lenders managed to pass the Bank of England stress tests this year.
Equities in Swedish radiation therapy gear maker Elekta demonstrated one of the worst performances, declining by 7.7% having posted a sudden sink in operating revenue for a second straight quarter.
AMC spiked more than 100% on Wednesday, the struggling brick-and-mortar retailer Bed Bath & Beyond jumped by about 51%.
The biggest newsmaker of the stock market in the past few days has been Virgin Galactic. The stock jumped by more than 20% in premarket trading on Monday.
The United States will release retail sales and producer inflation (PPI index) numbers at 15:30 MT time on June 15.
Gold has plunged amid the stronger US dollar as investors await the Fed’s meeting this week.
All eyes are turning to the Federal Reserve and the US dollar. How to trade XAU/USD, EUR/USD, and GBP/USD?