![]() ![]() The Fed is scrambling to get prices under control after being criticized earlier for reacting to slowly to inflation pressures.īritain’s central bank also has raised rates, and the European Central Bank says it will do so next month. The Dow Jones Industrial Average fell 0.5% to 30,364.83 and the Nasdaq composite rose 0.2% to 10,828.35.Įxpectations of an unusually big Fed rate hike increased after government data Friday showed consumer inflation accelerated in May instead of easing as hoped. That puts it in a bear market, or a drop of 20% from the last market top. On Wall Street, the S&P 500 declined to 3,735.48, putting it 21.8% below its Jan. New Zealand and Singapore advanced while Jakarta declined. The Kospi in Seoul shed 1.2% to 2,463.45 after the government reported South Korea’s unemployment rate ticked up 0.1% to 2.8% in May. Hong Kong’s Hang Seng gained 1.2% to 21,312.67 while the Nikkei 225 in Tokyo shed 0.7% to 26,435.01. The Shanghai Composite Index gained 1.1% to 3,323.64 after the Chinese government reported factory output rebounded into positive territory in May as anti-virus controls that shut down businesses in Shanghai and other industrial centers eased. “Money markets are already pricing around 90% possibility of such action.” They worry that aggressive Fed action to cool inflation that is running at a four-decade high might tip the biggest global economy into recession.Ī “hawkish surprise” from the Fed could be a “further shock to risk assets,” said Anderson Alves of ActivTrades in a report. Wall Street’s benchmark S&P 500 index lost 0.4% on Tuesday as traders waited for a Fed rate hike they expect to be three-quarters of a percentage point, or triple the usual margin. BEIJING (AP) - Asian stock markets were mixed Wednesday ahead of the Federal Reserve’s announcement of how sharply it will raise interest rates to cool U.S.
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