Global stocks rise as Netflix earnings boost confidence and energy fears cool
- Global stocks rose on Wednesday after Netflix posted better-than-expected earnings and global
- Investors were in a more upbeat mood after the S&P 500 shot up almost 3% on Tuesday as earnings season ramped up.
Global stocks rose on Wednesday after Netflix earnings came in better than expected and as fears about a global energy crisis cooled.
Europe's Stoxx 600 index ticked 0.35% higher as investors awaited the latest interest rate decision from the
The ECB said last month that it intends to hike rates by 25 basis points. However, the governing council is now also considering a 50-basis point hike, according to media reports, as it tries to tamp down the strongest
Global stocks have suffered a brutal sell-off in 2022 as central banks have hiked interest rates — making borrowing more expensive — as they grapple with a near-worldwide surge in inflation.
But the mood has improved somewhat in recent days as investors have started to see more positives in the global economy after months of gloom. The S&P 500 jumped 2.76% Tuesday.
Netflix cheered investors on Tuesday when it revealed it had lost far fewer subscribers than expected in the second quarter of the year, shedding 970,000 compared to expectations of around 2 million. Shares in the streaming company were up around 7% in premarket trading.
A recent slide in energy prices has also raised hopes that inflation could soon be on its way down. That's despite the fact the falls have been driven by expectations that economies, and therefore demand for raw materials, are set to slow sharply.
Reports that Russia will restart the flow of natural gas to Europe this week through the Nord Stream 1 pipeline, which is currently closed for maintenance, have also eased fears of a brutal energy crunch on the continent.
However, price pressures showed little sign of abating in the UK, where inflation came in at a a fresh 40-year high of 9.4% in June, according to data released on Wednesday.
"Despite Tuesday's more positive trading session, we don't expect a sustained improvement in market sentiment until investors get greater clarity on the outlook for the economy, central bank policy, and political risks," said Mark Haefele, wealth management chief investment officer at UBS. "Uncertainty in all of these areas remains elevated, in our view."
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