Stock markets pulled back on Thursday as the US Federal Reserve and several of Europe’s central banks triggered stronger rate hikes. of interest that aim to curb inflation but fears of recession are rising.
In wall streetin the middle of the day the industrial average dow jones went down a 0.4 percentthe S&P 500 broad based lost 0.8 percentMeanwhile he nasdaq, technology-rich, fell 1.5 percent. This index was weighed down by shares of Teslawhich lost more than 3 percent after the recall of 1.1 million vehicles due to a defect in the automatic window system that poses risks of pinching the driver’s finger.
European markets also ended lowerwith the London’s FTSE 100 down 1.1 percent after the Bank of England (BoE) will raise its rate again to combat inflation and pointed out that the UK entered a recession in the current quarter. The increase of 0.5 percentage points from the BoE was less than the third consecutive increase of 0.75 points from the US Federal Reserve.
Likewise, Paris stepped back 1.87%, Frankfurt 1.84%, Madrid 1.24 Y Milan of 1.07%.
“Today has seen another bout of decline for stock markets across Europe and the US, with geopolitical and economic concerns weighing on risky assets againsaid Joshua Mahony, senior market analyst at the online trading platform IG. “In a week dominated by central banks, It was always going to be difficult to imagine a scenario in which operators emerged with a positive outlook”he added.
The world’s major central banks are rushing to raise rates to cushion global consumer prices, but investors fear rising borrowing costs herald a recession.
Swiss Y Norway also fueled sharp interest rate hikes on Thursday, two days after a large surge in Sweden.
The Fed announced on Wednesday its latest rate increase of 0.75 percentage pointswhich was accompanied by a grim acknowledgment that countering inflation would not be “painless”, as the Fed chairman put it, Jerome Powell.
“What shocked market participants yesterday is that the Fed, led by the chairman of The Fed, Powell, is really serious now about restoring price stability, and if that means a hard landing for the economy, so be it.”said Patrick O’Hare, an analyst at Briefing.com.
THE EURO FALLS
In Asia, Indonesia Y Philippines they also tightened monetary policy, but the Bank of Japan bucked the global trend by maintaining its status quo.
The dollar trimmed gains after rising against other currencies important after the Fed rate decision.
British pound briefly fell to a new 37-year low at $1.1212, but recovered after the BoE announcement.
The euro hit new dollar low in 20 years of $0.9809.
The and inwhich has collapsed due to the political rift between the US and Japanese central banks, recovered against the dollar after Japan’s Finance Ministry said it intervened in the foreign exchange market.
Oil prices extended their recent gains after Russian President Vladimir Putin announced a partial mobilization of the Russian military and made a veiled threat to use nuclear weapons against the West.
The euro fell to a record low against the dollar after the increase in interest rates by the Federal Reserve