“Robust employment data in October, the first month after the expiration of federal aid programs for families after the pandemic. More jobs were generated, the unemployment rate accelerated the decline and wages continue to grow strongly. A priori, this guarantees a certain recovery in the expansion of the GDP in 4Q21, but increases the chances of a faster monetary policy adjustment “, highlighted market sources.
They added: “to a certain extent, the data validates what Jerome Powell said: the economy is robust to withstand the start of tapering. A prior, short-term, good for Equity and negative for long Treasuries.”
The The dollar continued to appreciate against its major peers, including the British pound, which suffered a severe setback after the Bank of England confused markets on Thursday by overlooking inflationary pressures. and leave your interest rates unchanged.
Nonetheless, MSCI’s global equity gauge was down 0.08%, suggesting a possible end to its four-day streak of closes at record highs, in a week in which the world’s major central banks refrained from giving. surprises with aggressive policies.
The Global index was hit by Asian stocks, which fell earlier in the day. Asia-Pacific stocks excluding Japan fell 0.27%, while Japan’s Nikkei fell 0.7%.
The breakthroughs came even after the Federal Reserve finally announced Wednesday that it would begin cutting its massive asset-buying program, though Fed Chairman Jerome Powell said he’s in no rush to increase borrowing costs.
“Although what was expected happened, it is a significant milestone, the direction of travel now is clearly towards normalization of policy, although the Fed emphasized that the reduction is not an adjustment,” said Stefan Hofer, chief investment strategist at LGT. in Asia Pacific. “It was really expert communication and very well handled.”
In Asia, Hong Kong put pressure on the regional index, which fell 1.25%, weighed down by declines in paper from banks sensitive to the interest rate outlook, such as HSBC, which fell 3.6% after the position. of caution from the BoE and in the midst of anxiety generated by the real estate crisis in China.
Chinese construction company Kaisa Group Holdings Ltd’s share price was suspended on Friday, a day after a subsidiary announced it had failed to pay for a wealth management product, the latest sign of a deepening liquidity crisis in the sector. Chinese real estate.
An index that includes mainland Chinese real estate companies with operations in Hong Kong fell 2.8% and a reading of the property segment in China lost 2%. More broadly, the Shanghai stock market was down 1% and Chinese selective stocks fell 0.5%.
While investors were pleased with the clear expansive message from the Fed, several felt they had been misled by the Bank of England’s monetary policy authorities.
On Friday, the British pound was trading near a one-month low after falling 1.36% the day before the central bank’s decision, which also shook UK and European bonds generally.
The dollar index traded at 94,529 units, close to the 12-month highs hit in October, as the US currency gained ground against the euro.
Crude prices were up more than 1%, recovering after OPEC + opted to stick to its plans to gradually increase production, and spot gold was down 0.1%.
Source From: Ambito
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