The possibility of a new rate hike of 75 basis points by the Federal Reserve leads to the Industrial Average dow jones lost 0.8% and the S&P 500 down 0.6%.
The euro only briefly brushed parity with the dollar, but that was enough. The German DAX and the French CAC40 almost they doubled their losses morning, to 1.5% Y 1.4%, respectively. The London FTSE did not stay very far, since another 4% rise in the price of gas joined the pressures.
“The CPI of 9.1% is the highest figure in the last 40 years; the only good news is that core inflation is slightly lower“, “And the parity of the euro (…) well, European economic prospects continue to worsenespecially if Russian gas doesn’t start coming back,” Close Brothers Asset Management chief investment officer Robert Alster said.
Concerns that rising interest rates in the United States will cripple the global economy have been felt around the world. The copperwhich is in step with global growth, touched a minimum of 20 months Y has plummeted 30% since April.
In this context, the gains that can be received from fixed income at a global level increase. The 10-year US Treasury bond yields -the reference of the costs of loans worldwide- rose again above 3%, from 2.97%, while also digesting the latest cut in US growth forecasts from the International Monetary Fund. Meanwhile, heGerman public debt raises its 10-year yields rose to 1.15%after two days of sharp declines, while the yield on Italian 10-year debt rose to 3.27%.
Regarding the Asian stock market, the MSCI index Asia-Pacific stocks outside of Japan gained 0.5%surpassing two consecutive days of losses and having fallen to its lowest level in two years the previous day. Japan’s Nikkei rose 0.5%after losing nearly 2% the day before.
the dollar indexwhich measures the performance of the greenback against six other currencies, it stood firm at just over 108. The eurowhich is down more than 11% since January, last traded at $1.0022, having dipped as low as $0.9998 shortly after the data. Although traders point to some support in the market, Entities such as JPMorgan have warned that it could fall to $0.90 if Russia severely restricts gas supplies in the region.
As for commodities, crude Brent fell 3.2% and fell back below the u$s100 the barrel, the copper lost 1.5% on the London Metal Exchange (LME) to u$s7,242 the ton, after touching the US$7,202.50.
In the cryptoactive market, the Bitcoin rose more than 2% and it looked like he was going to break a three-day losing streak, though u$s19,772 continued to trade below the key psychological mark of $20,000.
Source: Ambito
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