Global markets sank on Thursday, as investors often work on policymakers’ move to curb inflation by raising interest rates, as steeper borrowing costs can contribute to economic growth. I gave up the profit from the previous day.
Wall Street futures suggest that stocks will fall when the market opens, with S & P 500 expected to fall 2.3%. After the Federal Reserve announced the biggest rate hike in decades, it was more than reversing the rise on Wednesday when the market recovered and was ready to inflict financial pain to control prices. It’s a sign. Wednesday’s rise broke five consecutive losses a day, but US stocks are ready to resume their decline and appear to have slipped further into the bear market.
Federal Reserve Chair Jerome H. Powell emphasized that inducing a recession was not part of the plan, but economists are skeptical. Bank of America analysts predict that the Fed will have a “mysterious soft landing” of the economy, while Deutsche Bank counterparts believe it can curb inflation without causing a recession. He called the bank “overly optimistic.”
Yields on government bonds (a measure of borrowing costs) have fallen after the Federal Reserve has suggested that they will not create a habit of raising rates on a very large scale, but they have returned early Thursday. Deal with sustained inflation. Two-year government bonds trade at about 3.3%, about 0.5 points higher than just a week ago.
In Europe, the STOXX 600 index fell 2% in the early stages of trading and is well on its way to a seventh fall in eight days. The decline reversed all profits the day before after the European Central Bank convened an unscheduled meeting to address growing concerns about “fragmentation” of the eurozone market.
Thursday, Swiss Central Bank Raised interest rates For the first time in 15 years, there was a more aggressive move than many expected. The country’s benchmark stock index, SMI, fell 2.6%. Investors are also preparing to release the latest information on a series of rate hikes by the Bank of England, with the FTSE 100 down more than 2%.
Asian stocks closed mixedly, Japan’s Nikkei 225 rose 0.4%, South Korea’s KOSPI rose 0.2%, and Hong Kong’s Hang Seng Index fell more than 2%.
