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    US stocks dip as traders weigh Covid curbs and monetary policy direction

    US stocks fell on Thursday as traders considered new restrictions aimed at addressing the spread of the Omicron coronavirus variant, along with questions about the direction of monetary policy.

    Wall Street’s Best Equity S & P 500 Index fell 0.3%. Equity Gauge in the US closed its last session near record highs. Clean up Almost all of its losses have persisted in volatile trading since Omicron rattled the market in late November.

    The technology-focused Nasdaq Composite fell 0.4% in the morning trading.

    Weekly U.S. unemployment numbers announced before Thursday’s opening bell showed the first tightening of the labor market. Applying for unemployment allowance It fell to 184,000 in the week until December 4, the lowest level since 1969. Economists polled by Refinitiv expected a figure of 215,000. The number of unemployed last week was 227,000.

    “We are back in place [pre-pandemic]”Stephen Blitz, Chief US Economist at TS Lombard, said with reference to the latest US unemployment data. “this is, [Federal Reserve] From the perspective of normalizing the policy interest rate. “

    European stocks have fallen. The Stocks Europe 600 Index fell 0.1%, while the London FTSE 100 fell 0.2%.

    UK has moved to its implementation Plan B restrictions Includes guidance for working from home on Wednesday night and mandatory mask wearing at most indoor venues. Denmark has stepped up its anti-virus measures following similar moves by EU countries such as Germany, Italy and Poland.

    Meanwhile, economists surveyed by Refinitiv expect data to be released on Friday, showing that consumer prices in the United States have risen 6.8% in the year to November.

    “There was a post-Omicron rally, but I think it’s still too early to interpret recent data,” said Larea Connor, senior market strategist at BNY Mellon. “If inflation rises significantly, I think the market will be nervous about the Fed’s rate hikes. [interest rates] Faster and faster than ever before. “

    Inflation in the United States has exceeded the Fed’s targets in recent months due to coronavirus-related supply chain disruptions, rising fuel prices and rising rents.

    Federal Reserve Chair Jay Powell last week supported the central bank’s faster reduction in $ 120 billion in monthly bond purchases, which has been driving the market since March 2020.

    The Economist researched on the Financial Times by the University of Chicago Booth Business School Global Markets Initiative Expect the Fed to finish buying assets by March, As soon as you set the rate stage, it will go up.

    The Asian markets on Thursday were mixed. China’s CSI 300 rose 1.7% after official data showed that factory gate inflation fell from 13.5% last month to 12.9% in November. Hong Kong’s Hang Seng Index rose 1.1% and Tokyo’s Topix fell 0.6%.

    Thursday’s rating agency Fitch gives Chinese real estate developer Evergrande a foreign currency credit rating “Limited default”..

    In the government debt market, yields on 10-year Treasuries fell 0.02 percentage points to 1.49 percent. Bond yields are inversely proportional to price.

    The dollar index, which measures the US currency, rose 0.3% against the other six. Sterling, Hit the worst against the dollar Over a year on Wednesday, it was stable at around $ 1.32.

    Brent crude, the oil benchmark, fell 1.3% to $ 74.84 a barrel.

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    US stocks dip as traders weigh Covid curbs and monetary policy direction Source link US stocks dip as traders weigh Covid curbs and monetary policy direction

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