NEW YORK: World stock markets were mixed on Thursday, with European stocks rising after Britain and Norway hiked interest rates and the ECB trimmed its super-sized bond buying program, while global markets rallied against the US Federal Reserve. Struggled to maintain direction a day after. shrinkage speed.
The pan-European STOXX 600 index was up 1.23% and a gauge of MSCI shares worldwide was down 0.13% after moving from positive to negative territory on the US trading day.
In the United States, rising producer and consumer prices as well as recent readings on the fast-spreading Omicron version of the coronavirus have fueled concern.
The Nasdaq ended the day sharply lower as investors were pushed toward more financially sensitive sectors and away from growth and technology stocks sooner than before the Federal Reserve’s decision.
Oil closed above $75 a barrel, supported by a positive economic outlook indicated by the Fed on Wednesday, along with record US implied demand and a fall in crude stockpiles.
Shares of the UK bank rose after the BoE raised rates by 0.15 per cent to 0.25%, while Turkey’s lira made another bashing effort after its own central bank cut rates.
The Dow Jones Industrial Average fell 0.08% to end at 35,897.64, while the S&P 500 fell 0.87% to 4,668.67. The Nasdaq Composite fell 2.47% to end at 15,180.44.
US crude closed 2.13% higher at $72.38 a barrel, while Brent was up 1.54% at $75.02.
The dollar index fell 0.409% and the euro rose 0.02% to $1.133.
The US 10-year yield was 1.4241%, while the 30-year yield was 1.8668%.
The Fed created a scenario in which the pandemic, despite the Omicron boom, gives way to a benign set of economic conditions, in which inflation has largely subsided on its own, interest rates are rising slowly and unemployment is low. Lives.
Thursday’s data showed the number of Americans filing new claims for unemployment benefits rose marginally last week, although they remained at levels in line with tightening labor market conditions.
Separately, a survey showed that production at US factories rose in November to their highest level in nearly three years.
“After (the Fed’s Wednesday meeting), it’s hard to get excited about this round of economic data, but so far it mostly supports the Fed’s bullish course,” said OANDA analyst Edward Moya.
The ECB in Frankfurt said it would cut its bond purchases under its 1.85 trillion euro pandemic emergency purchase program (PEPP) over the next quarter and would have prolonged the plan by March.
However, it will continue to reinvest PEPP’s profits through the end of 2024 and accelerate a longer but more stringent asset purchase program to limit withdrawal effects.
“On balance, the new outlook for quantitative easing is a bit off,” said Gurpreet Gill, macro strategist, global fixed income, at Goldman Sachs Asset Management.
Norway’s central bank, which hiked in September on the back of an economic rebound, went ahead with further increases as expected, saying more were likely. The Swiss National Bank kept its rates locked at -0.75%.
The Turkish lira fell 5.6% to a record low of 15.689 against the dollar on Thursday after the central bank lowered its policy rate in line with an unconventional economic program set by President Tayyip Erdogan.
The dollar has more than doubled in value against the lira this year, dealing a blow to Turkey’s large emerging market economy. There are growing concerns about what could happen if inflation continues to rise, which is already above 20%, from low rates and stimulus ahead of the presidential election in 2023.
Disclaimer: This post has been self-published from the agency feed without modification and has not been reviewed by an editor
read all breaking news, today’s fresh news And coronavirus news Here.