The wall street stocks go down this Monday in line with the world markets, since the investors are awaiting the Federal Reserve conference this week for signs of possible interest rate hikes in the US to cool rising inflation.
The three main indicators of the New York Stock Exchange opened with losses of more than 1 percent: the Dow Jones falls 1.1%, the selective S&P 500 1.3% and the technological Nasdaq yields 1.5% in the first minutes of negotiations.
Internationally, London and Frankfurt are trading at a loss. Tokyo and Hong Kong fell. Shanghai, the only major market to gain, gained after China’s central bank lowered a rate affecting mortgage costs. Oil prices fell more than $1.50 a barrel.
US central bankers have been insisting on a single message: interest rates will go up until inflation starts to come down. But financial markets are still waiting to hear a different tune, signaling that the pace of rate hikes will slow.
All eyes will be on this week’s annual meeting of monetary policymakers in Jackson Hole, Wyoming, to hear Federal Reserve Chairman Jerome Powell explain his position – again – and observers from the market expect to get something more to their likingafter the minutes of the July meeting of the US central bank confirmed the rate hike plans despite signs of weak economic activity.
Traders fear that aggressive measures to contain inflation, which is at multi-decade highs, could derail global economic growth.
“The Fed continues to feel inflation. Its stocks haven’t even begun to dent inflationary pressures.”, Clifford Bennett of ACY Securities said in a report. “They also haven’t started to dampen economic activity at all. The economic slowdown was already in play for other reasons.”
On Friday, the S&P 500 lost 1.3%. It ended down 1.2% for the week. The index is down 11.3% this year. For its part, the Dow Jones fell 0.9% and the Nasdaq lost 2%.
In Asia, the Shanghai Composite Index rose 0.6% to 3,275.93 on Monday after the People’s Bank of China lowered the prime lending rate, a market interest rate target. , for a five-year loan, to shore up weak home sales.
The Nikkei 225 in Tokyo sank 0.5% to 28,794.50 points. Hong Kong’s Hang Seng fell 0.6% to 19,656.98. South Korea’s Kospi fell 1.2% to 2,462.50 and Sydney’s S&P ASX-200 fell 1% to 7,046.90. New Zealand, Singapore and Bangkok advanced while Jakarta fell.
While, the Chinese central bank cut its target for a five-year loan by 0.15 percentage pointup to 4.3%. The rate for a one-year loan, which affects other sectors, was reduced by just 0.05 percentage point to 3.65%.
The ruling Communist Party is trying to revive economic growth after debt crackdowns caused property sales to plummet and Shanghai and other industrial cities closed for weeks from late March to fight outbreaks. of viruses.
The move “reflects the severity” of the housing slump and shows that Beijing is “willing to take stronger action,” Invesco’s David Chao said in a report.
The Chinese regime is trying to revive economic growth without resorting to widespread stimulus that could push up inflation or politically sensitive housing costs.
In energy markets, benchmark US crude fell $1.52 to $88.92 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the price base for international trade, fell $1.55 to $95.17 a barrel in London.
The dollar rose to 137.13 yen, from 136.91 yen on Friday. The euro fell to $1.0016 from $1.0034.
(With information from AP and AFP)