Global stocks mixed after Wall Street fell on fears of rate hike

Beijing – Asian stock markets fell Friday and Europe rose after Federal Reserve officials suggested US interest rates may need to be raised higher than expected to keep inflation in check. and started trading.

London and Frankfurt rose while Shanghai, Hong Kong and Tokyo fell. Wall Street futures fell. Crude oil prices rise.

Wall Street’s benchmark S&P 500 index fell 0.3% on Thursday. This may require Federal Reserve (Fed) officials to curb price rises by raising the central bank’s key lending rate to almost double its already elevated level. because he suggested that he couldn’t.official We warned earlier that interest rates could remain high However, traders had hoped the Fed might backtrack on those plans due to signs of a slowdown in economic activity.

Traders say the global economy could plunge into recession after the Fed and European and Asian central banks hiked interest rates unusually large this year to stem inflation at its highest level in decades. I am concerned.

“The Fed’s hawks continued to circle the wagon, repeatedly stressing that the fight against inflation was not over yet,” said Stephen Innes of SPI Asset Management.

In early trading, London’s FTSE 100 rose 0.2% to 7,360.01. Frankfurt’s DAX rose 0.4% to 14,320.39 and Paris’ CAC 40 rose 0.5% to 6,608.04.

On Wall Street, S&P 500 futures rose 0.2%. The Dow Jones Industrial Average was up 0.3%.

On Thursday, the Dow Jones Industrial Average fell less than 0.1%. The Nasdaq Composite closed 0.3% lower.

All major US indices were headed for weekly losses.

President of the Federal Reserve Bank of St. Louis reconfirmed the position of the FedJames Bullard has suggested that the Fed’s main short-term lending rate may need to be raised from 5% to 7%.

For that to happen, the Fed’s benchmark rate will need to rise even more significantly. 3.75% to 4%, up from near zero in March.

Traders expect the Fed to raise its benchmark lending rate again at its December meeting, but after four consecutive increases of 0.75 points, it will rise 0.75 points, tripling its normal margin.

Bullard’s presentation follows a report showing that inflation is starting to ease. consumers continue to spend among very strong job market.

“The Fed may need to continue raising rates beyond February,” Oanda’s Edward Moya said in a note.

In Asia, the Shanghai Composite Index fell 0.6% to 3,097.24 and Tokyo’s Nikkei 225 fell 0.1% to 27,899.77. Hong Kong’s Hang Seng fell 0.3% to 17,992.54.

Seoul’s Kospi was 2,444.48, up less than 0.1%. Sydney’s S&P-ASX 200 was up 0.2% at 7,151.80.

India’s Sensex fell 0.6% to 61,348.47. New Zealand, Jakarta and Bangkok rose while Singapore fell.

Investors are also concerned about the impact of Russia’s war on Ukraine, which has pushed up prices of oil, wheat and other commodities, as well as China’s tightening measures against the virus.

Chinese “Zero COVID” approach Supply shortages for some of Asia’s largest manufacturers have slowed economic growth.

In the energy market, US benchmark crude rose 46 cents to $82.10 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $3.95 to $81.64 on Thursday. Brent crude, the benchmark for international oil trading, rose 33 cents to $90.11 a barrel in London. It fell $3.08 in the previous session to $89.78.

The dollar fell slightly to 140.07 yen from 140.25 yen on Thursday. The euro fell from $1.0364 to $1.0348.

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https://www.ksat.com/business/2022/11/18/global-stocks-mixed-after-wall-st-falls-on-rate-hike-worries/ Global stocks mixed after Wall Street fell on fears of rate hike

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