Stocks rose, with U.S. futures showing gains on the first day of trading in 2023. The yen lost ground, while gold traded at its highest level in more than six months.
Contracts on the S&P 500 rose, and European stocks rose after sluggish trading at a low Tuesday. Stocks in Hong Kong and mainland China rose after initial declines.
European stock indices are growing more actively than American ones against the backdrop of a strengthening dollar:
Investors start 2023 with subdued expectations after a sharp swing last year when global stocks lost 20% in value, the worst performance since the financial crisis. Bonds lost 16%, the biggest drop since at least 1990 for a single leading measure, as central banks raised interest rates to slow inflation.
"We are starting the year in challenging financial conditions, with potential inflation momentum coming from China and more broadly this means we may need to approach the start of this calendar year with relative caution across the portfolio." – Marc Franklin, Senior Portfolio Manager at Manulife Investment Management.
