Global Stocks Mixed As Inflation Fears Compete With Economic Optimism

The global stock market went in many directions on Tuesday, but Wall Street recovered its early losses after Federal Reserve Board of Governors Jerome Powell curbed inflation concerns.

US stocks fell early, but most of them recovered at the closing price after Powell’s comment, but tech-rich Nasdaq fell.

London’s benchmark FTSE 100 stock index rose 0.2%, but Frankfurt’s DAX 30 gave up 0.7% after most Asian markets recorded a rise.

Markets are worried about the prospect that a pandemic recovery will ignite inflation, leading to higher lending rates, especially in the US economy, where Congress is pushing for a $ 1.9 billion stimulus package.

“Investors are quickly rediscovering that the recovery of Covid will not create all stocks equally, which, along with energy and other inflation beneficiaries, is a cheaper travel-related marker. Because it’s an expensive technical name (sales) to provide funding for Axi Strategist Stephen Innes.

But National Securities’ Art Hogan responded to the signal that the market was ready to recover, and it took time to realize that “faster economic growth could drive better earnings.” Said that it might take.

Powell appeared Tuesday on the first day of two days of pre-parliamentary testimony (a twice-yearly event), and inflation could become “unstable” this year as spending recovers from the collapse of the pandemic. However, these price increases are unlikely to be significant or permanent.

While promising to keep benchmark lending rates low until inflation remains above the 2.0% target for some time, the Fed emphasized that it is ready to handle any situation. “If that turns out, the unwanted inflationary pressures that arise will persist and there are tools to deal with it.”

He said inflation in the United States has averaged less than 2% over the last 25 years.

In the euro area, inflation rose 0.9% in January compared to a 0.3% fall in December, official data show, adding concern that price increases are gaining momentum.

In the foreign exchange market, the pound traded at a high of nearly three years against the dollar the day after British Prime Minister Boris Johnson announced a roadmap from the British coronavirus blockade from March.

However, the UK’s unemployment rate is currently at 5.1%, a high level of nearly five years, and could rise further after the government terminates the furlough system, which continues to employ millions of workers during the blockade. there is.

Bitcoin fell nearly 13% on Monday after US Treasury Secretary Janet Yellen stumbled on a record-breaking execution after plundering cryptocurrencies as an inefficient means of payment that consumes huge amounts of energy per transaction That’s about $ 48,300.

Oil prices went up and down, but fell sharply later that day.

Jerome Powell’s Parliamentary testimony is closely tracked on the idea of ​​the Federal Reserve’s view of rising Treasury yields

New York-Dow: Up less than 0.1% to 31,537.35 points (closing price)

New York-S & P 500: up 0.1% to 3,881.37 (closing price)

New York-Nasdaq: 13,465.2 down 0.5% (closing price)

EURO STOXX 50: down 0.3% at 3,689.10.

London-FTSE 100: 0.2% increase at 6,625.94 (closing price)

Frankfurt-DAX30: 0.6% down 13,864,81 (closing price)

Paris-CAC 40: 0.2% increase at 5,779.84 (closing price)

Hang Seng Index: rise 1.0% at 30,632.64 (closing price)

Shanghai-Comprehensive: 3,636.36, down 0.2% (closing price)

Tokyo-Nikkei 225: Closed due to holidays

Euro / dollar pair fell from $ 1.2161 to $ 1.2147 at 2145 GMT

Pounds / $: UP from $ 1.4064 to $ 1.4106

Euro / Pound: Fall from 86.44 pence to 86.08 pence

Dollar / Yen: Up 105.19 Yen from 105.07 Yen

Brent Crude: $ 65.06 / barrel down 0.3%

West Texas Intermediate: down 0.8% at $ 61.15

Global Stocks Mixed As Inflation Fears Compete With Economic Optimism Source link Global Stocks Mixed As Inflation Fears Compete With Economic Optimism

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