European stocks fell on Friday following a fall in the Asian stock market as traders valued signs of sustained high inflation in the United States and the imminent outlook for monetary tightening.
The regional STOXX 600 Europe index fell 0.8% in early trading. London’s FTSE 100 fell 0.4%. In Hong Kong, the Hang Seng Index fell 0.3%, while Japan’s Nikkei 225 fell 1.3%.
Inflation on Wednesday is U.S. consumer prices 7% per year December — The fastest pace in almost 40 years. Another data on Thursday showed that US wholesale prices rose at an annual rate of 9.7% in December.
Lael Brainard, Candidate for Federal Reserve Vice-Chair of US President Joe Biden, I told the confirmation hearing “We are taking action in monetary policy that we are confident of lowering inflation,” he said later Thursday.
Wall Street Stocks Thursday’s session fell sharplyThe technology-intensive Nasdaq Composite fell 2.5%, and the broader S & P 500 index fell 1.4%. S & P’s utilities and the consumer staple sector were the only two leaders as a sign that traders were withdrawing from perceived high-risk assets and shifting to investments with more defensive characteristics.
Traders say the central bank of the United States will raise these interest rates to about 1% in 2022 by quadrupling the cost of borrowing, which affects interest rates around the world, after bringing these rates close to zero in the spring of 2020. I’m looking forward to it.
In the government debt market, yields on US 10-year Treasuries, which are inversely proportional to prices, were stable at 1.71 percent on Friday. Yields on 2-year government bonds, which closely track interest rate expectations, were added 0.02 percentage points to 0.92 percent.
The 10-year German Bund yield fell 0.02 percentage points to minus 0.1 percent. In currencies, the dollar index, which measures currencies against the other six currencies, fell 0.1% on Friday.
Moscow’s benchmark stock index on the Moscow Stock Exchange rose about 2% this week, although it rose on Friday to show that Russia’s geopolitical tensions are beginning to permeate financial markets.
In commodities, the price of Brent crude, an oil benchmark, rose 0.4% on Friday to $ 84.42.
European stocks slip after declines on Wall Street Source link European stocks slip after declines on Wall Street