World Stocks Down From 5-Week Peak As Dollar Sputters

US shares were mixed and world equities eased off a five-week peak on Wednesday (Thursday, Oct. 27, 2022, in Manila), as the dollar's decline boosted commodities and pressured Treasury yields.

Photo Insert: The Euronext in Amsterdam is the fourth-largest stock exchange in the world.

Investors weighed disappointing earnings from U.S. heavyweights against hopes the Federal Reserve will slow its aggressive pace of interest rate hikes, Chris Prentice and Dhara Ranasinghe reported for Reuters.

The Dow Jones Industrial Average closed a hair higher, rising 0.01%. The S&P 500 lost 0.74% and the Nasdaq Composite dropped 2.04%, dragged by disappointing earnings and warnings from Microsoft Corp. and Alphabet Inc.

MSCI's World Stock Index was lower after touching a five-week high. Europe's Stoxx 600 finished up 0.7% at its strongest level since Sept. 20.

MSCI's broadest index of Asia-Pacific shares outside Japan rallied more than 1%, while Japan's Nikkei hit its highest level since Sept. 20. The euro pushed back above $1 for the first time in five weeks. In Australia, inflation raced to a 32-year high last quarter as the cost of home building and gas surged.

The surprise added pressure on the central bank to reverse a recent dovish turn, though markets doubt there will be a dramatic shift.

Some of Europe's largest banks warned of growing risks as the economy fizzles after they posted stronger-than-expected profits, helped by a trading boom in volatile markets and higher interest rates. Deutsche Bank posted a better-than-expected jump in third-quarter profit, and Britain's Barclays also beat profit forecasts.

Google owner Alphabet posted softer-than-expected ad sales after Tuesday's close and Microsoft missed revenue forecasts, while a warning from Dutch semiconductor supplier ASM added to concerns about slowing economic growth. US new home sales decreased 10.9% and mortgage rates reached their highest level in 20 years last week, data showed.

Asian shares rallied, in a sign that some investors were taking comfort from a perception that a turn in the global rate-hike cycle may be near. Although the Fed is widely expected to deliver another 75 basis-point hike in November, a sense that it could then start to slow its aggressive tightening cycle has lifted sentiment in share markets and taken the edge off a dollar rally.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic