HONG KONG (AP) — World shares advanced on Friday after Wall Street roared higher on bets that market-rattling interest rate hikes are coming to an end.
U.S. futures were little changed and oil prices logged modest gains.
Germany’s DAX gained 0.3% to 15,184.05 and the CAC 40 in Paris added 0.2% to 7,076.01. Britain’s FTSE 100 was up 0.2% at 7,464.21.
Investors have taken heart from comments by Federal Reserve Chair Jerome Powell suggesting interest rates might not have to be raised further to keep inflation in check.
Wall Street could be headed for more swings, though. The latest monthly update on the U.S. jobs market, due later Friday, is expected to show a slowdown in hiring for October.
The S&P 500 leaped 1.9% Thursday in its fourth straight winning day and is already up 4.9% this week. The Dow Jones Industrial Average jumped 1.7% and the Nasdaq composite climbed 1.8%.
Asian markets also advanced.
Hong Kong’s Hang Seng added 2.6% to 17,687.00, while the Shanghai Composite gained 0.7% to 3,030.80. Tokyo markets were closed for a holiday.
In China, a services industry survey showed a slight improvement in October, though retail sales hit its lowest level in 10 months. Similar surveys for the manufacturing sector released early this week showed more sluggish market conditions overall.
Australia’s S&P/ASX 200 gained 1.1% to 6,978.20. South Korea’s Kospi surged 1.1% to 2,368.34. India’s Sensex was 0.6% higher and Bangkok’s SET rose 0.8%.
Longer-term Treasury yields fell. The yield on the 10-year Treasury remained at 4.67% early Friday from more than 5% last week, when it reached its highest level since 2007.
Lower yields pump oxygen into financial markets. They make it easier for businesses and households to get loans, encourage investors to pay higher prices for stocks and reduce the pressure on the entire financial system.
However, Powell warned after the Fed’s announcement Wednesday that it was keeping its benchmark rate unchanged that if the 10-year yield ends up falling too far it might reignite price pressures. Then the central bank might need to hike rates again.
One preliminary report Thursday said output by U.S. businesses rose during the summer by a larger share than the number of hours worked increased. Such an improvement in productivity gains could ease pressure on inflation while helping the economy to grow.
A separate report said slightly more U.S. workers applied for unemployment benefits last week than expected. That’s bad news for those workers, but a cooler job market also could relieve price pressures.
Also Friday, oil prices were steady after experiencing wild swings this week. A barrel of benchmark U.S. oil rose 54 cents to $83.00 in electronic trading on the New York Mercantile Exchange. It added 90 cents on Thursday. Brent crude, the international standard, gained 43 cents to $87.28 per barrel.
In currency trading, the U.S. dollar fell to 150.37 Japanese yen from 150.44 yen. The euro cost $1.0624, up from $1.0620 late Thursday.
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