As traders assessed the outlook for interest rates in the United States and Europe and anticipated the US presidential debate, global stock markets diverged Tuesday.
As Wall Street opened modestly on Tuesday following a late-week plunge, its main indices rallied on Monday.
This single debate between US presidential candidates Kamala Harris and Donald Trump could have a significant impact on the 2024 election.
Briefing.com analyst Patrick O’Hare believes the US stocks’ tepid gains are due in part to hesitancy ahead of tonight’s presidential debate.
Wall Street gained on Monday after declining jobs data rekindled fears the Federal Reserve delayed cutting interest rates too long, as fears the economy could slip into recession.
Also on Wednesday, investors will receive US inflation data.
Russ Mould, AJ Bell’s investment director, noted that tomorrow’s US inflation figures could be a key indicator of investor sentiment.
At next week’s meeting, it is widely expected that the Federal Reserve will lower US interest rates. However, there is debate over whether the rate cut will be 25 or 50 basis points, with some arguing that a big cut might indicate worry from decision-makers.
Saira Malik, chief investment officer at asset manager Nuveen, said financial markets are now focused on boosting economic growth rather than reducing inflation.
In light of disappointing macroeconomic data, especially those related to the labour market, market volatility has climbed.”
According to official data released by the Bank of England on Tuesday, wages grew at their slowest pace in two years, suggesting the Bank will not cut interest rates next week.
According to the data, the pound strengthened against the dollar and euro, while the London FTSE 100 index — which includes numerous multinational companies earning in the US dollar — fell.
Paris and Frankfurt both climbed in afternoon trade in the eurozone.
On Thursday, the European Central Bank will meet to discuss monetary policy and is widely expected to cut interest rates again.
China’s economy is also dampening sentiment, weighed down by a mixed bag of trade issues that aren’t encouraging investors.
While exports increased in August, imports missed expectations as the country’s leaders struggled to boost consumption.
Following inflation reports from July that showed lower than expected growth, it appears that efforts to boost consumer demand and business activity are not working.
The Chinese government is now under pressure to announce fresh stimulus measures for the world’s number two economy, even though they have no desire to repeat the type of spending seen during the global financial crisis.
At 1330 GMT, key figures will be released
In New York, the Dow moved up 0.2% to 40,892.92 points.
The S&P 500 index rose 0.4% to 5,491.15 in New York
In New York, the Nasdaq Composite rose 0.4% to 16,949.64.
The London-based FTSE 100 index fell 0.5% to 8,233.17 points.
There was a 0.1% rise in Paris – CAC 40 at 7,430.52, less than expected.
At 18,343.57, Frankfurt’s DAX was down 0.5%
At 36,159.16 (close), the Nikkei 225 declined by 0.2%.
The Hang Seng Index rose 0.2% to 17,234.09 at the close of trading.
The Shanghai Composite closed up 0.3% at 2,744.19 (close).
On Monday, the euro was trading at $1.1041 but now it is at $1.1036
Dollar/pound: $1.3071 versus $1.3075
As of 143.08 yen, the dollar is down from 143.11 yen
From 84.42 to 84.43 pence, the euro/pound rose
The West Texas Intermediate price fell 0.5 percent to $68.35 per barrel
A barrel of Brent North Sea Crude fell 0.6 percent to $71.44
RLS/LTH burst
Timenews1 provided that news.
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