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18/06/24
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Global Stocks Higher After US Retail Sales Data
On Tuesday, a measure of global stocks rose for the second consecutive session after a weaker-than-expected consumer spending report, while investors evaluated comments on interest rates by Federal Reserve officials.
According to the U.S. Commerce Department, retail sales were 0.1% higher last month after April’s downwardly revised 0.2% decline and lower than economists’ expectations for a 0.3% gain. This indicated that economic activity was easing as higher interest rates curbed consumer spending patterns.
Annex Wealth Management’s chief economist, Brian Jacobsen, said an increase would likely be a dead-cat bounce and April’s figure was revised downward and it was a weak rise from the lower base.
He added that consumers were feeling the pinch of high financing costs and high prices.
Market expectations that the U.S. Federal Reserve would cut rates in Sept. inched up, pricing in a 67% probability for a cut of 0.25%, up from 61.5% in the previous session.
The Nasdaq Composite lost 17.30 points, or 0.10%, to 17,839.39, the S&P 500gained 3.45 points, or 0.06%, to 5,476.60 and the Dow Jones Industrial Average fell 17.74 points, or 0.05%, to 38,759.63.
MSCI’s index of global stocks gained 2.57 points, or 0.32%, to 802.94 after rising to within a point of a new high.
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