July 1, 2022
Stocks Climb While 10-Year Yields Drop Below 2.9%: Markets Wrap
Stocks rebounded after their worst first half in 52 years, with traders assessing the outlook for the economy. The S&P 500 erased losses at the end of a week marked by intense volatility. A rally in bonds pushed the yield on 10-year US notes below 2.9% while the dollar climbed, following its best quarter since 2016.
Euro-Zone Inflation Hits Record, Boosting Case for Big Hikes
Euro-area inflation surged to a fresh record, surpassing expectations and bolstering calls for the kind of aggressive interest-rate increases being deployed by central banks across the world. Driven once more by soaring food and energy costs, consumer prices jumped 8.6% from a year earlier in June — up from 8.1% in May. Economists surveyed by Bloomberg saw a gain of 8.5%. The median estimate in the poll has fallen short for 11 of the last 12 months.
India Raises Gold Import Tax Amid Trade Deficit, Rupee Low
India increased its import tax on gold in a surprise move that aims to reduce inflows to the world’s second-largest consumer, after the country’s ballooning trade gap pushed its currency to a record low. The import duty on gold was increased to 12.5% from 7.5%, according to a government notice dated June 30. This is a reversal of last year when India cut the tax to 7.5% in the federal budget.
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