Image: Reuters Berita 24 English - Prior to the lengthy U.S. holiday weekend, the second half of the year began with increases in internati...
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| Image: Reuters |
Berita 24 English - Prior to the lengthy U.S. holiday weekend, the second half of the year began with increases in international stock indices, while the 10-year Treasury yield decreased to its lowest level since COVID-19 rocked markets in March 2020.
Prices for copper fell to their lowest level in 17 months.
Early in the New York session, stocks fell, but late in the session, they rose. The United States' markets will be closed on Monday in observance of the Fourth of July.
Market fluctuations may be slightly exaggerated because it's a Friday before a long weekend, according to Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
Cardillo stated that he anticipates an overall improvement in stock market performance in the second half of the year.
In the second half, there will be more green than red days, according to Cardillo.
The U.S. benchmark S&P 500 increased 1.1 percent as it finished the worst first half since 1970 on Thursday. The MSCI world stocks index, which on Thursday had its largest half-year percentage fall since it was founded in 1990, increased by 0.4 percent.
The Nasdaq Composite increased 99.11 points, or 0.9 percent, to 11,127.85, while the S&P 500 rose 39.95 points, or 1.06 percent. The Dow Jones Industrial Average increased 321.83 points, or 1.05 percent, to 31,097.26.
The global stock market index MSCI increased 0.39 percent while the pan-European STOXX 600 index decreased by 0.02 percent.
As investors priced in the possibility that the Federal Reserve will drive inflation down to close to its target rate, rates on Treasuries fell.
The yield on 10-year notes fell 23.3 basis points from the outset to its lowest point throughout the session before reversing course to finish down 8.5 basis points at 2.889 percent.
The two-year yield decreased 8.8 basis points to 2.839 percent, which is normally in line with interest rate predictions. The yields on the two-year and 10-year bonds were each at about four-week lows.
According to data released on Friday, manufacturing production in the euro zone declined last month for the first time since the start of the coronavirus pandemic in 2020, while inflation rates reached yet another all-time high.
Manufacturing activity in the United States slowed down faster than anticipated in June, with a gauge of new orders declining for the first time in two years. This is further indication that the economy was cooling as a result of the Federal Reserve's vigorous tightening of monetary policy.
Investors' concern over how a potential recession may affect the demand for metals caused copper prices to fall.
The price of three-month copper on the London Metal Exchange dropped by 2.6 percent to $8,047 per tonne after hitting a low of $7,955 for the first time since early February 2021.
Oil prices increased as a result of production disruptions in Libya and anticipated shutdowns in Norway, allaying concerns that a slowdown in the economy would reduce demand.
Brent crude futures increased by $2.60, or 2.4 percent, to settle at $111.63 per barrel. U.S. crude gained $2.67 or 2.5 percent to close at $108.43 per barrel.
On Friday, the dollar increased after posting its best quarter since 2016. Demand for the safe-haven U.S. dollar increased on Friday as concern over the state of the world economy caused the Australian dollar, a barometer for growth, to drop to a two-year low.
To reach 105.12, the dollar index increased 0.36 percent against a basket of currencies. On June 15, it touched a 20-year high of 105.79, which it is now maintaining slightly below. The Australian dollar dropped to its lowest level since June 2020, 67.64 cents.
In the three months leading up to the end of June, Bitcoin had its worst quarterly decline in history. It most recently decreased 2.16 percent to $19,494.40.
