The decline in market-led markets continued in Wall Street and in Europe on Thursday, as investors reduced market risk in response to the US Central Bank’s signal of an immediate end to the epidemic.
Wall Street’s Nasdaq Composite share index’s heaviest technical index, which fell 3.3% on Wednesday the worst part since February 2021, it has dropped by 1 percent in morning activity.
The blue-chip index S&P 500 fell by 0.5 percent, while the benchmark technical index index dropped by 1 percent.
In Europe, the share of the Stoxx 600 equity gauge fell by 1.6%, as government bond prices also fell worldwide.
This came just minutes after a recent Fed meeting revealed that the central bank officials, who have strengthened the financial markets since March 2020 with a major bond program and low 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.
U.S. forces and banks soared Thursday, however, as some traders took the hawkish shift to the Fed as a vote-dependent vote for the US economy.
“The companies that are most affected by financial management are the ones that the market will benefit from,” said Fahad Kamal, chief financial officer at Kleinwort Hambros.
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 prospect of higher inflation and interest rates raises the value of the shareholding, which investors prefer in terms of expected profits and dividends, which are further enhanced by early or medium-sized companies such as expertise. .
The Fed’s minutes also indicate that its executives are beginning to discuss how to reduce the size of the central bank, which has doubled to $ 9tn since early 2020 when it has sharply boosted its Treasury assets and debt security.
Yields on the benchmark 10-year US Treasury, which rises as government debt prices fall, rose 0.04 percent to 1.74 percent. The world’s largest lending and credit rating is up 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, the highest rate since May 2019. Riskier eurozone debt was also affected, while 10-year Italian 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 technology changed.
Additional reports by Tommy Stubbington
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