Newsletter: No hedge
How the most important market trends and the best spirit of Wall Street respond to them. Weekday delivery.
European stock markets have fallen as trader-anticipated data show a continued surge in US inflation that may shake the Federal Reserve towards a pandemic-led loose monetary policy tightening.
The Stocks Europe 600 Index fell 0.3%, but in the region Economic rebound From the coronavirus crisis. London’s FTSE 100 fell 0.5% and Germany’s Xetra Dax fell 0.2%.
Futures markets have suggested that Wall Street’s S & P 500 will trade flat in early New York trading.
Economists surveyed by Bloomberg forecast data released late Tuesday said US consumer price headlines in August rose 5.3% compared to the same period last year, with inflation rising 5% for the third straight month. Indicates that the value has been exceeded.
The Federal Reserve Board does not expect to raise interest rates from current lows until 2023.Central bank chair Jay Powell said rising inflation caused a shortage of computer chips. Suspension of shipment..
However, according to a survey by the Federal Reserve Bank of New York, U.S. households now believe inflation will reach 5.2% within a year, well above the central bank’s target of an average price increase of 2%. ..
Brent crude, the oil benchmark on Tuesday, rose 0.8% to $ 74.11 a barrel, heading for the third straight day of gains.
Recent US central bank officials have shown a willingness to reduce the Fed’s $ 120 billion monthly bond purchases through a pandemic to reduce borrowing costs and increase lending and spending.
Rebecca Chesworth, Head of Equity for State Street’s SPDRETF business, said:
She added that the Federal Reserve Board’s reduction in bond purchases was widely predicted.
Yields on 10-year Treasuries, which are inversely proportional to the price of government debt securities and affect borrowing costs around the world, increased 0.02 points to 1.343 percent. Germany’s comparable Bund yield rose 0.02 percentage points to minus 0.303 percent.
The dollar index, which measures the US currency against the other six, fell 0.2%. Sterling then rose 0.3% against the dollar to $ 1.3873. Job data Just as the government is preparing to withdraw pandemic-related wage subsidies, it has shown that UK employers are rushing to hire new staff.
In Asia, Hong Kong’s Hansen index fell 1.4% after falling 1.5% on Monday amid the Chinese government’s crackdown on the tech and gaming industries and the stress of the country’s real estate market.
Beijing government break up Payment giant Alipay while facing China’s leading real estate developer Evergrande Debt crisis.. Adding further pressure to the Chinese economy, Fujian’s key export states have reported new outbreaks of highly contagious delta coronavirus variants.
Chesworth characterized the fact that the western stock market has not responded more strongly to the situation in China as “strange.”
“Given the number of times I’ve talked to clients who are buying into the company for exposure to China, but I don’t see the opposite,” she said.
European stocks dip as investors bet on continued high US inflation Source link European stocks dip as investors bet on continued high US inflation