Indices on all global stock exchanges in the positive, fear of recession in the US has subsided

European stock exchanges saw indices in the positive on Friday morning for the fourth consecutive day, thus on track for weekly gains. The STOXX 600 index of leading European stocks was up 0.3 percent at 9:30 AM, strengthening for the fourth day in a row. Meanwhile, the London FTSE index weakened by 0.21 percent to 8,330 points, while the Frankfurt DAX rose by 0.32 percent to 18,240 points, and the Paris CAC increased by 0.16 percent to 7,435 points.

Stock indices are also rising on the other side of the Atlantic. The Dow Jones strengthened by 1.39 percent to 40,563 points, while the S&P 500 rose by 1.61 percent to 5,543 points, and the Nasdaq index increased by 2.34 percent to 17,594 points. After data showed earlier in the week that inflation in the US is gradually easing, investors were also encouraged yesterday by data on consumption growth, the largest driver of gross domestic product (GDP).

Retail trade turnover increased by one percent in July, following a 0.2 percent decline in June. Fears of recession have subsided thanks to a report that the number of new unemployment claims unexpectedly fell last week, indicating that the labor market remains strong. Thanks to all the recent economic indicators, investors believe that the US central bank will begin to lower interest rates in September.

In nine of the 11 most important sectors of the S&P 500 index, stock prices rose yesterday, with the highest increases in retail and technology. Among the biggest gainers was Walmart’s stock, which jumped by 6.6 percent after the largest US retail chain raised its earnings estimates for this year, thanks to increased sales. This also boosted the entire retail sector, with stock prices of Costco and rivals Target rising between 1.7 and 4.3 percent. Cisco Systems’ stock price also surged nearly seven percent after the tech giant raised its quarterly revenue estimates and announced a reduction in its workforce.

Asian stocks are also rising, particularly in the technology sector. The MSCI Asia-Pacific index, excluding Japan, was up 1.1 percent at 7:00 AM and is on track for gains of about two percent this week. This morning, the Nikkei index on the Tokyo Stock Exchange jumped nearly 3 percent, while stock prices in Shanghai, Australia, Hong Kong, and South Korea rose between 0.1 and 1.8 percent.

On the currency markets, the value of the dollar against a basket of currencies has increased. The dollar index, which shows the value of the US dollar against the other six major world currencies, is around 103.20 points this morning, approximately 0.4 percent higher than yesterday at this time. Meanwhile, the dollar exchange rate against the Japanese currency rose to 149.10 yen, while at the beginning of the week it was around 147 yen.

The US currency has also strengthened against the European currency, with the euro price sliding to 1.0975 dollars, while at one point yesterday it approached the level of 1.10 dollars. Oil prices, however, have fallen. The price of a barrel on the London market slipped 0.22 percent to 80.85 dollars, while on the US market, a barrel decreased by 0.32 percent to 77.90 dollars. Despite this, prices are on track for gains this week of more than one percent.