Across the globe, stocks continued to extend gains, with the Dow and the Nasdaq leading the way. The S&P 500 and the NYSE composite also added to their recent rally. In addition, investors are still eager for signs of the market’s bottom.
Despite rumors that China may be ready to reopen its doors, investors remain cautious about the country’s economic growth. Russia’s decision to block gas flows through its Nord Stream 1 pipeline sparked worries over energy prices. Moreover, the United States has been weighing whether it should increase interest rates. In the meantime, the Federal Reserve’s minutes showed that the central bank is prepared to moderate its rate hikes.
In the US, a softer than expected inflation report helped calm concerns about the Federal Reserve raising interest rates. Meanwhile, the 10-year Treasury yield rose to 3.72% from 3.71% Tuesday. As the Fed continues to signal that it’s prepared to slow down its rate hikes, the dollar may remain under pressure.
The bullish German DAX index also extended its recent gain, with a 1% gain. The index reached a pivotal 11200 level for the first time since August. It broke several resistance levels in the process. Earlier, it had been trading inside a bearish channel for weeks. However, it now has reclaimed its previous support level.
European stock markets are also gaining momentum, with the Stoxx 600 closing at its highest level in more than a month. The DAX has been the first major European benchmark to enter a technical bull market, as the index is now more than 20% above its 52-week low. The positive trend in earnings reports could continue to drive stock prices higher.
A series of economic reports are scheduled for release today, with the NYSE and the Dow expected to open slightly higher. The S&P 500 is set to open about 29 points higher at 12,824. The DAX is also expected to open at a new high, following its longest winning streak in more than a year. In addition, the European Commission will release optimistic growth forecasts for the euro area countries.
In the United Kingdom, the FTSE index is expected to open 17 points higher at 6,960. While the European Union is warning euro-area countries that the economy is improving, it’s also warning that recession risks could emerge again.
After a few days of heavy volatility, the US stock market is once again on a winning streak. The Dow is on track to extend its streak to seven sessions, while the S&P 500 has entered a new bull market. Although the market is still a bit volatile, it has been able to extend its gains thanks to the positive outlook on earnings. Its current level is just below the 13-month peak that it reached in January.
The DAX index is currently up more than 3.5 percent from its previous session. It is now atop its pivotal 11,200 level, but its upbeat sentiment is also due to the Greek government’s reopening of its economy. If the deal goes through, the market could be in for a buying frenzy.