[ad_1]
The European economy slowed to a halt on Thursday as sales that began with the stock market crashed sharply after US central bank announced a sharp end to the downturn.
The Stoxx 600 regional index fell 1.1 percent, London’s FTSE 100 fell 0.6 percent and Germany’s Xetra Dax lost 1.1 percent.
Stoxx reached its climax on Wednesday when traders responded to declining fears about Omicron coronavirus’ diversity by shifting money from its beneficiaries in the technical sector to banks and powerful groups represented in Europe.
Thursday morning, all shares of Stoxx fell. Although its lowest technology was the most successful, retail groups fell by 1.2% and start-up businesses fell by 0.7%.
This came just minutes after a recent Federal Reserve meeting revealed that officials of the central bank, which has expanded its financial markets since March 2020 with a larger bond program and lower interest rates, admitted that it was. fast time withdrawal of this treatment.
“Markets are popping up to the end of easy cash flow,” said Olivier Marciot, sales manager at Unigestion.
“We’ve had a lot of support and financial support, which makes it a place where everything goes smoothly, and when you remove it it’s different,” he added. “It’s a miracle of unity when everything is beaten at the same time.”
Fed Minutes also indicated that the world’s largest bank may need to raise interest rates “faster or slower” than officials initially anticipated to reduce inflation.
The Nasdaq Composite-based Wall Street Expenditure Index fell 3.3% on Wednesday, respectively. the worst part from February 2021. Low interest rates can justify rising prices because they make the company’s future profits more important, this is greatly enhanced by professional and other start-up companies.
But the prospect of higher borrowing swept across all US markets. The Dow Jones Industrial index, which rose sharply in the previous Wednesday as trading led by the head of inflation, fell 1.1%.
US Treasury prices have also fallen in response to signals from the Fed that are now beginning to discuss how to cut their reserves, which have risen sharply to less than $ 9tn since early 2020, when the central bank sharply expanded its assets. of Treasuries and repetitive protections and loans.
Yields on the 10-year Treasury note, which move in line with its value, rose 0.02 per cent to 1.725 per cent. This mortgage loan, which affects lending and calculating the global economy, has risen from 1.63 percent earlier this week.
European government agencies were banned from trading after the Fed. Germany’s 10-year interest rate rose to 0.05 percent, its highest level since May 2019. Riskier eurozone debt was also affected, while Italian 10-year yields rose above 1.3 for the first time since July 2020.
In Asia, Japan’s Nikkei 225 closed about 2.9 percent down and China’s CSI 300 China dropped by 1 percent. Hong Kong’s Hang Seng index rose 0.7 percent, however, the sharp decline in Chinese stocks changed.
Additional reports by Tommy Stubbington
Unhedged – Markets, money and strong ideas
Robert Armstrong shares what is most important in the market and discusses how well Wall Street positive ideas respond. Enter Pano so that the letter can be sent to your inbox every day of the week
[ad_2]
Source link
