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European, US shares jump higher as euro falls to lowest since 2017

European, US shares jump higher as euro falls to lowest since 2017

Following rocky trade on Wednesday, key U.S. equity indexes closed higher on the back of solid earnings from Visa and Microsoft, while commodity stocks propelled European equities to their first rise in four sessions.

After Russia cut off gas supplies to Bulgaria and Poland, the euro fell to its lowest level since 2017, and investors became more concerned about the region's economic growth.

As expectations grew that the US Federal Reserve would boost interest rates quickly in the following months as well as that the US economy would outperform the eurozone countries, the dollar increased steadily, on track for its greatest monthly gain since January 2015.

The Dow Jones Industrial Average increased 0.19% to 33,301.93 points, while the S&P 500 index rose 0.21% to 4,183.92 points.

The Nasdaq Composite Index fell 0.01% to 12,488.93.

Supported by solid earnings, Microsoft Corp gained 4.8% while Visa Inc gained 6.5%, effectively helping lift the S&P 500 up.

Several of Wall Street's biggest players have announced results this week, with investors looking to counterbalance the torrent of negative press that has slammed stocks.

Alphabet Inc, the parent company of Google, slumped 3.6% as quarterly earnings fell short of estimates due to sluggish YouTube ad sales. Boeing's stock slumped 7.5% after the company revealed $1.5 billion in unexpected expenditures as a result of the 777X production delay.

After hitting six-week declines at the beginning, the pan-European STOXX 600 index climbed 0.7%, with miners and oil companies both rising.

The US Treasury yields climbed as investors awaited better clarity on the Federal Reserve's ‘restrictive’ policy, which the central bank plans to use next week to battle inflation by slowing economic growth.

The euro fell to $1.0512, its lowest level versus the US dollar since May 2017. Analysts noted the crisis in Ukraine as well as raising concerns that the EU's economy may undergo a recession this year as the key reasons.

The dollar index, which compares the greenback to a basket of major currencies, touched a five-year high.

As inflation touched a 20-year high, Australian equities fell 0.78%, drawing interest rate hikes closer.

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Meghna Singh

An English Literature graduate, Meghna Singh ventured into the profession of content development to incorporate her knack for writing articles across verticals including technology, healthcare, business, and alike for News Origins and Newsorigins. She has also completed her MBA in Tourism and worked as a content creator in the field of product development.