Stocks, US futures rise as China helps sentiment: market wrap

Stocks and US equity futures pushed higher on Friday as sentiment was boosted by a move by Chinese banks to lower a key interest rate record amount for long-term lending.

Share prices rose in Japan, Hong Kong and China, slightly reducing losses on Wall Street on Thursday. The European agreement gained about 1%.

Chinese banks have lowered their five-year lending prime rates, which will help reduce mortgage costs and increase lending demand amid a property recession and a collapse.

New Chunbao, a fund manager at Shanghai Wenji Asset Management, said the move “comes as a big surprise and is undoubtedly a positive one in boosting market sentiment.”

Treasuries were stable, with the U.S. 10-year yield approximately 2.84%. A dollar gauge cut its biggest one-day fall since 2020 Oil was around 1 111 per barrel

The rebound has slowed this year due to a sense of risk. Investors continue to struggle with concerns about the economic downturn, as the Federal Reserve raises interest rates to ease price pressures. The stock is on course for a historic seventh week of global share fall.

Esther George, president of the Kansas City Fed, acknowledged that there was a “rough” patch of equities but did nothing to soften the US Federal Reserve’s hawkish tone.

BNY Mellon, senior market strategist at Investment Management, told Bloomberg Television: “The biggest risk right now is that the developed-market central banks could start a recession. We increasingly suspect that they have made a policy mistake. ”

Consumer confidence in the UK has plummeted to its lowest level since the 1970s, when the cost of living increased more than the depth of the energy crisis, further depressing the population. This could give the Bank of England reason to proceed cautiously to raise rates further.

In the latest episode of Russia’s war in Ukraine, the Senate passed a more than 40 40 billion Ukraine aid package, sending the bill to President Joe Biden for his signature.

U.S. traders will be prepared for further volatility after Friday, as the monthly expiration of options associated with equities and exchange-traded funds. The process is notorious for stirring up market swings.

Some of the major rice in the market:


  • The S&P 500 futures rose 0.8% in London at 6:32 p.m. The S&P 500 is down 0.6%
  • Nasdaq 100 futures rose 1.1%. The Nasdaq 100 is down 0.4%
  • Japan’s Topix index added 0.9%
  • Australia’s S&P ASX / 200 index rose 1.1%
  • South Korea’s Kospi index rose 1.7%
  • China’s Shanghai Composite Index rose 1.3%
  • Hong Kong’s Hang Seng Index rose 2.2%
  • Eurostocks 50 futures rose 1.1%


  • The Bloomberg Dollar Spot Index rose 0.1%
  • The euro was $ 1.0583, down 0.1%
  • The Japanese yen was at 127.83 per dollar
  • The offshore yuan rose 0.4% to 70 6.7037 per dollar


  • Yield to 10 year Treasury was 2.84%


  • West Texas Intermediate crude was at $ 110.85 a barrel, down 1.2%
  • Gold was at 84 1,844.11 an ounce, up 0.2%

© 2022 Bloomberg

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