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.
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
UAE currency: the story behind the money in your pockets
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
UAE currency: the story behind the money in your pockets
Winners
Ballon d’Or (Men’s)
Ousmane Dembélé (Paris Saint-Germain / France)
Ballon d’Or Féminin (Women’s)
Aitana Bonmatí (Barcelona / Spain)
Kopa Trophy (Best player under 21 – Men’s)
Lamine Yamal (Barcelona / Spain)
Best Young Women’s Player
Vicky López (Barcelona / Spain)
Yashin Trophy (Best Goalkeeper – Men’s)
Gianluigi Donnarumma (Paris Saint-Germain and Manchester City / Italy)
Best Women’s Goalkeeper
Hannah Hampton (England / Aston Villa and Chelsea)
Men’s Coach of the Year
Luis Enrique (Paris Saint-Germain)
Women’s Coach of the Year
Sarina Wiegman (England)
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
A Bad Moms Christmas
Dir: John Lucas and Scott Moore
Starring: Mila Kunis, Kathryn Hahn, Kristen Bell, Susan Sarandon, Christine Baranski, Cheryl Hines
Two stars
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
Scoreline
Liverpool 3
Mane (7'), Salah (69'), Firmino (90')
Bournemouth 0
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
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MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Boulder shooting victims
• Denny Strong, 20
• Neven Stanisic, 23
• Rikki Olds, 25
• Tralona Bartkowiak, 49
• Suzanne Fountain, 59
• Teri Leiker, 51
• Eric Talley, 51
• Kevin Mahoney, 61
• Lynn Murray, 62
• Jody Waters, 65
States of Passion by Nihad Sirees,
Pushkin Press
Opening Premier League fixtures, August 14
- Brentford v Arsenal
- Burnley v Brighton
- Chelsea v Crystal Palace
- Everton v Southampton
- Leicester City v Wolves
- Manchester United v Leeds United
- Newcastle United v West Ham United
- Norwich City v Liverpool
- Tottenham v Manchester City
- Watford v Aston Villa
Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
'The Woman in the House Across the Street from the Girl in the Window'
Director:Michael Lehmann
Stars:Kristen Bell
Rating: 1/5
