MSCI World index up 0.2; nearly 6 for the month
Dollar recovers early losses to trade flat vs peers
Euro zone GDP data beats expectations; clouds ahead
LONDON, July 29 Reuters Global stocks rose on Friday, on course for their best month since late 2020, as euro zone growth beat expectations, while the dollar staged a recovery from the day39;s lows as traders await fresh U.S. data for clues to the outlook for rates.
As inflation surges across major markets and central bankers fight to raise rates without killing off growth, riskier markets like stocks have tended to react positively to any perceived softening in sentiment on the part of policymakers.
After Thursday data showed the U.S. economy contracted in the second quarter, stocks rose as traders bet rates would rise more slowly. Euro zone numbers on Friday, meanwhile, beat expectations, yet recession fears are mounting as energy inflation continues to bite in the face of conflict in Ukraine.
The MSCI World index was last up 0.2, on course for a near6 monthly gain, its best since November 2020, buoyed by broad gains across European markets, with the STOXX Europe 600 up 0.9.
U.S. stocks look set to gain later in the session, with futures for the SP 500 and Nasdaq up 0.7 and 1.1, respectively, with all eyes on fresh wages and consumer price data for clues to the health of the economy.
Despite the positive end to the month for stocks, Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, said…