Stock update

European stock markets fell on Thursday, after the Hong Kong stock market saw new volatility and the U.S. central bank will hold an important central bank summit.

The Stoxx 600 index and the UK FTSE 100 index fell 0.4% across the region, the French Cac 40 index fell 0.5%, and the German Dax index fell 0.7%. Retailers, tourism and leisure and basic materials groups lag behind.

Asian markets are under greater pressure, Hong Kong’s Hang Seng Index Down trade 1.1%. The Hong Kong-listed Chinese group’s short video platform Kuaishou fell 9.2% after its second-quarter profit was lower than expected.

So far this year, the Hang Seng Index has fallen by 6.7%, and its technology sub-index has fallen by nearly 25%. The markets in Hong Kong and mainland China have recently caused successive rounds of turbulence due to Beijing’s suppression of the private sector.

At the same time, South Korea became the first major economy in Asia Raise interest rates Since the beginning of the epidemic.This move precedes the virtual Central Bank Governors Meeting Sponsored by the Federal Reserve Bank of Kansas City. Federal Reserve Chairman Jay Powell will deliver a speech on Friday, and the headline of the summit will be the summit.

As the economy and labor market have significantly recovered from the impact of the coronavirus, investors will look for clues as to when the Fed will begin to withdraw its crisis-period stimulus measures.

“In fact, our monetary policy settings are at an emergency level,” said Steven Bell, chief economist of BMO Global Asset Management. “The fire is almost extinguished, and it is inappropriate to continue to loosen monetary policy.”

Bell said that indicators such as signs of rising wage inflation will be important indicators for deciding when to start reducing the Fed’s $120 billion monthly asset purchase plan.

The 10-year U.S. Treasury bond yield rose by 0.02 percentage points to 1.356% on Thursday, bringing this week’s gains close to 0.09 percentage points. A higher yield indicates a fall in prices.

According to industry insiders, the trading conditions are 22 tons of U.S. government bonds The market has deteriorated recently, which may exacerbate the volatility of major economic events.

In the United States, S&P 500 futures rose 0.2%, while futures tracking the technology-focused Nasdaq 100 index were flat.

Commodities also fell. The global oil benchmark Brent crude fell 0.6% to US$71.81 per barrel, while the US marker West Texas Intermediate crude fell 0.8% to US$67.82 per barrel. Gold fell 0.2% to US$1,786 per troy ounce.

Unhedged-markets, finances and strong opinions

Robert Armstrong analyzed the most important market trends and discussed how the best people on Wall Street respond to these trends.register here Send the newsletter directly to your inbox every business day


Source link

Leave a Reply