CAPITAL OF THE WORLD, 31 August 2022 (WAM) — The US Federal Reserve (Fed) and ECB (European Central Bank) will raise key borrowing costs by 75 basis points at next month’s meeting, prompting markets. The stock market struggled to recover on Wednesday as the betting continued. Stubborn inflation as central banks on both sides of the Atlantic prepare to raise borrowing costs again next month has put investors on edge, Reuters reported.
Wall Street fell after an early rally, U.S. oil prices fell for a second straight day, and fears around the world that tightening monetary policy will hit demand and drag the global economy down. increase.
The MSCI National Stock Index fell 0.2%, down 18.5% for the year. The war in Ukraine, soaring energy prices and rising interest rates have hit risky assets.
The US S&P 500 Index fell 0.17%, the Dow Jones Industrial Average fell 0.3% and the Nasdaq Composite was flat.
The STOXX stock index of 600 companies in Europe fell 1.1% to a six-week low, down nearly 15% for the year.
In economic news, economic activity in China, the world’s second-largest economy, continued to decline this month after new COVID-19 infections, the worst heat wave in decades and a slump in the property sector. remained grim with overnight data showing that
Eurozone headline inflation hit another all-time high in August, better than expected and confirmed the possibility of a significant rate hike by the European Central Bank on 8 September.
Meanwhile, gold fell 0.4% to $1,715.4 an ounce, a one-month low. Crude fell further after he fell more than $5 overnight, but gained support after industry data showed US fuel inventories fell more than expected.
US West Texas Intermediate (WTI) crude futures fell 0.8% to $90.81 a barrel after falling $5.37 in the previous session on recession fears. Brent crude futures for October he fell 2.6%.
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