Global stock markets ended the week mixed, but Wall Street's record run anchored by the Dow Jones Industrial Average boosted bets that the US Federal Reserve will finally cut interest rates this year.
The Dow closed above the 40,000 mark for the first time on Friday, after breaching it for the first time on Thursday, as inflation data boosted hopes that US interest rates will go down in 2024.
The US Labour Department on Wednesday reported that Consumer Price Index inflation in April rose 3.4 per cent on an annual basis, leading economists to believe that it should return some level of confidence for Fed officials.
While still well above the Fed's long-term 2 per cent goal, Fed members insisted that the rate policy “is in a good place right now and that it will probably take longer for inflation to slow to the 2 per cent target”, Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, wrote in a note.
However, the recent hotter-than-expected inflation data is strengthening the argument for the Fed to be cautious in determining when to dial back interest rates, a representative for the International Monetary Fund cautioned on Thursday.
Also, separate reports released on Thursday underscored the Fed's bumpy path, as jobless claims for the week ending May 11 fell by 10,000 in a sign of a cooling labour market, while import prices jumped 0.9 per cent last month, the largest increase in more than two years.
The central bank's Federal Open Market Committee is scheduled to meet on June 11 and 12.
“Despite the Fed members’ cautious approach, the Fed said earlier this month that its next move is probably not a rate hike. Inflation is nowhere close to the levels where the Fed could reasonably and publicly hint at an upcoming rate cut,” Ms Ozkardeskaya said.
On Wall Street, the Dow added 0.34 per cent and the S&P 500 rose 0.12 per cent, to post weekly gains for the fifth and fourth straight week, respectively. The Nasdaq Composite, however, gave up 0.07 per cent, but was still up for a fourth week.
Year-to-date, the Dow, S&P 500 and Nasdaq are up 1.2 per cent, 1.5 per cent and 2.1 per cent, respectively.
In Europe, major stock indices settled lower, with London's FTSE 100 shedding 0.2 per cent to snap three weeks of gains, led by declines in personal goods and car parts.
The blue-chip index hit a fresh record high on Wednesday ahead of the US inflation report.
Elsewhere on the continent, Paris's CAC 40 retreated 0.3 per cent and Frankfurt's DAX lost 0.2 per cent.
Earlier in Asia, markets in Hong Kong and Shanghai rallied after China introduced new measures to bolster the struggling property sector in the world's second-largest economy.
The “heavyweight policies”, as described by the housing ministry-run China Real Estate Newspaper, marked “a significant historic moment” for the crisis-hit industry, and involves an extra 1 trillion yuan ($138 billion) funding from the central bank and eased mortgage rules, among others.
Hong Kong's Hang Seng index rose 0.9 per cent, while the Shanghai Composite climbed 1 per cent. Tokyo's Nikkei 225, meanwhile, declined 0.3 per cent.
In commodities, oil prices settled higher on Friday and notched a weekly gain amid an improved demand outlook in the US and China.
Brent edged higher by 0.85 per cent, to settle at $83.98 a barrel, while West Texas Intermediate added 1 per cent to close at $80.06 a barrel.
Gold, meanwhile, rose 1.33 per cent to settle at $2,417.40 per ounce, for a third straight weekly gain, boosted by China's real estate measures and US interest rate cut hopes.
The precious metal, a hedge against inflation, hit a record high of $2,431.29 on April 12 and has found decent support around the $2,300 level, analysts have told The National.
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
THREE
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How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
if you go
The flights
Air Astana flies direct from Dubai to Almaty from Dh2,440 per person return, and to Astana (via Almaty) from Dh2,930 return, both including taxes.
The hotels
Rooms at the Ritz-Carlton Almaty cost from Dh1,944 per night including taxes; and in Astana the new Ritz-Carlton Astana (www.marriott) costs from Dh1,325; alternatively, the new St Regis Astana costs from Dh1,458 per night including taxes.
When to visit
March-May and September-November
Visas
Citizens of many countries, including the UAE do not need a visa to enter Kazakhstan for up to 30 days. Contact the nearest Kazakhstan embassy or consulate.
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
MATCH INFO
Quarter-finals
Saturday (all times UAE)
England v Australia, 11.15am
New Zealand v Ireland, 2.15pm
Sunday
Wales v France, 11.15am
Japan v South Africa, 2.15pm
The biog
Name: Ayisha Abdulrahman Gareb
Age: 57
From: Kalba
Occupation: Mukrema, though she washes bodies without charge
Favourite things to do: Visiting patients at the hospital and give them the support they need.
Role model: Sheikha Fatima bint Mubarak, Chairwoman of the General Women's Union, Supreme Chairwoman of the Family Development Foundation and President of the Supreme Council for Motherhood and Childhood.
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
