The US stocks They fell and dollar strengthened this Tuesday, on the second day of the Davos World Economic Forumamid warnings that markets may have gotten ahead of the timing and scope of the cuts interest rates of the central banks.
The three main US stock indices declined, while the greenback’s strength against a basket of global currencies diminished. “I think the reason for this weakness is the caution coming out of Davos that central banks may not live up to the market’s expectations for rate cuts,” he said. Peter Cardillofrom Spartan Capital Securities in New York.
Depending on the tool CME FedWatch, Financial markets see a 68.1% chance of a 25 basis point rate cut at the end of the March meeting of the Federal Reserve. Investors were also digesting various political and geopolitical events, such as the resounding victory of donald trump in the first contest of the US presidential race in Iowa on Monday and the tensions in the Red Sea, Gaza and Ukraine.
European stocks were also pressured by less optimistic rate cut expectations following recent comments from monetary policymakers. European Central Bank. The pan-European STOXX 600 index lost 0.3% and MSCI’s measure of global shares gave up 0.67%. Emerging market values fell 1.63%. MSCI’s broadest index of Asia-Pacific shares excluding Japan declined 1.77%, while Japan’s Nikkei fell 0.79%.
The dollar and bonds on the rise
Meanwhile, the dollar index rose 0.75% and the euro lost 0.69%, to 1.0873 dollars, in a context in which bets on rate cuts decreased and tensions intensified in middle East. He and in It weakened 0.86%, to 147.03 units per dollar, and the pound sterling lost 0.6%, to 1.2649 dollars.
The performance of the US treasury bonds improved as the bullish sentiment of the previous week moderated and the central banks of Europe and USA contradicted market expectations on rates. The 10-year benchmark papers fell 24/32 in price, yielding 4.041%, while the 30-year debt fell 48/32, to 4.2815%.
For their part, crude oil prices operated unevenly. He Brent advanced 0.23%, to 78.33 dollars a barrel, and the West Texas Intermediate in the United States (WTI) It fell 0.36% to $72.44, while gold fell due to the strengthening of the dollar. Spot gold fell 1% to $2,034.59 an ounce.
Source: Ambito
