24 C
New York

Traders Fret Over Rising Inflation

Markets swung Monday as traders worried about a possible recession caused by central banks raising interest rates to combat rising inflation.

The discovery of new Covid-19 cases in China has reignited concerns about the government’s policy of sealing off towns and cities to eradicate the disease, despite the economic cost.

Following the SP 500’s worst January-June period since 1970, Wall Street began the second half on a positive note Friday, as a lower-than-expected reading on US manufacturing provided hope that banks will not embark on an extended period of monetary tightening.

This followed a drop in consumer confidence, which is a key driver of the world’s top economy.

However, National Australia Bank’s Rodrigo Catril believes the Federal Reserve and other global financial leaders will continue to raise interest rates as long as inflation remains near multi-decade highs.

“While the data suggests a US economic slowdown is on the way, we are not yet seeing signs of easing inflationary pressures,” he wrote in a commentary.

READ MORE: Vandals Destroy 20 Transformers In Three Weeks – EDC

Figures show Eurozone inflation hit a record 8.6 percent in June, indicating the difficulty officials will face in controlling rising prices. The European Central Bank is expected to raise interest rates this month for the first time in over a decade.

While rising prices remain a major issue, Chris Weston of Pepperstone Group believes the psychology is “shifting radically from inflation concerns to one now firmly focused on growth.”

While New York held a commanding lead, Asia struggled.

Hong Kong fell as investors returned from a long weekend to make up for Friday’s losses, while Seoul, Taipei, Bangkok, and Jakarta also fell.

Tokyo, Shanghai, Mumbai, Sydney, Singapore, Taipei, and Wellington, on the other hand, increased.

Early trade in London, Paris, and Frankfurt was positive, while US futures were negative.

A surge in new Covid cases in China over the weekend weighed on investor sentiment, as they fear a return to the painful lockdowns that hammered the world’s second-largest economy.

Over 700 new infections were recorded in the country on Saturday and Sunday, up from fewer than 50 in the previous two weeks.

Macau saw its first two Covid deaths over the weekend, prompting authorities to consider a city-wide lockdown to combat the disease. The remarks caused Hong Kong-listed shares in Macau casinos to plummet.

Concerns about a recession weighed on sentiment as traders bet on a drop in demand, while the head of Asia at crude trading giant Vitol said he saw signs that consumers were beginning to feel the pinch of high commodity costs.

“There’s very clear evidence out there of economic stress being caused by high prices, what some people call demand destruction,” Mike Muller said. It consists of “not only oil but also liquefied natural gas.”

– Tokyo – Nikkei 225: 0.8 percent higher at 26,153.81 at around 0810 GMT (close)

The Hang Seng Index in Hong Kong fell 0.1 percent to 21,830.35. (close)

Shanghai Composite: 0.5 percent higher at 3,405.43. (close)

The FTSE 100 in London is up 0.9 percent to 7,231.42.

Dollar/yen: Up from 135.28 yen on Friday to 135.37 yen today.

Pound/dollar: $1.2116, down from $1.2098.

Euro/dollar: $1.0424 (down from $1.0433).

Euro/pound: 86.03 pence, down from 86.21 pence.

West Texas Intermediate: $108.36 per barrel, down 0.1 percent.

Brent North Sea crude: 0.1 percent lower at $111.51 per barrel.

New York – Dow: 1.1 percent higher at 31,097.26. (close)

JOIN OUR NEWSLETTER

- Advertisement -

Our newsletter gives you access to a curated selection of the most important stories daily.

- Advertisement -

Must Read

Uchara Faith
Faith is a valiant writer who has an undisputed passion for writing. She has worked with many highly reputable companies as content creator, radio presenter. She has a book to her name titled ECHO OF A DISTRESSED HEART. She's goal driven oriented person.

Markets swung Monday as traders worried about a possible recession caused by central banks raising interest rates to combat rising inflation.

The discovery of new Covid-19 cases in China has reignited concerns about the government’s policy of sealing off towns and cities to eradicate the disease, despite the economic cost.

Following the SP 500’s worst January-June period since 1970, Wall Street began the second half on a positive note Friday, as a lower-than-expected reading on US manufacturing provided hope that banks will not embark on an extended period of monetary tightening.

This followed a drop in consumer confidence, which is a key driver of the world’s top economy.

However, National Australia Bank’s Rodrigo Catril believes the Federal Reserve and other global financial leaders will continue to raise interest rates as long as inflation remains near multi-decade highs.

“While the data suggests a US economic slowdown is on the way, we are not yet seeing signs of easing inflationary pressures,” he wrote in a commentary.

READ MORE: Vandals Destroy 20 Transformers In Three Weeks – EDC

Figures show Eurozone inflation hit a record 8.6 percent in June, indicating the difficulty officials will face in controlling rising prices. The European Central Bank is expected to raise interest rates this month for the first time in over a decade.

While rising prices remain a major issue, Chris Weston of Pepperstone Group believes the psychology is “shifting radically from inflation concerns to one now firmly focused on growth.”

While New York held a commanding lead, Asia struggled.

Hong Kong fell as investors returned from a long weekend to make up for Friday’s losses, while Seoul, Taipei, Bangkok, and Jakarta also fell.

Tokyo, Shanghai, Mumbai, Sydney, Singapore, Taipei, and Wellington, on the other hand, increased.

Early trade in London, Paris, and Frankfurt was positive, while US futures were negative.

A surge in new Covid cases in China over the weekend weighed on investor sentiment, as they fear a return to the painful lockdowns that hammered the world’s second-largest economy.

Over 700 new infections were recorded in the country on Saturday and Sunday, up from fewer than 50 in the previous two weeks.

Macau saw its first two Covid deaths over the weekend, prompting authorities to consider a city-wide lockdown to combat the disease. The remarks caused Hong Kong-listed shares in Macau casinos to plummet.

Concerns about a recession weighed on sentiment as traders bet on a drop in demand, while the head of Asia at crude trading giant Vitol said he saw signs that consumers were beginning to feel the pinch of high commodity costs.

“There’s very clear evidence out there of economic stress being caused by high prices, what some people call demand destruction,” Mike Muller said. It consists of “not only oil but also liquefied natural gas.”

– Tokyo – Nikkei 225: 0.8 percent higher at 26,153.81 at around 0810 GMT (close)

The Hang Seng Index in Hong Kong fell 0.1 percent to 21,830.35. (close)

Shanghai Composite: 0.5 percent higher at 3,405.43. (close)

The FTSE 100 in London is up 0.9 percent to 7,231.42.

Dollar/yen: Up from 135.28 yen on Friday to 135.37 yen today.

Pound/dollar: $1.2116, down from $1.2098.

Euro/dollar: $1.0424 (down from $1.0433).

Euro/pound: 86.03 pence, down from 86.21 pence.

West Texas Intermediate: $108.36 per barrel, down 0.1 percent.

Brent North Sea crude: 0.1 percent lower at $111.51 per barrel.

New York – Dow: 1.1 percent higher at 31,097.26. (close)

JOIN OUR NEWSLETTER

Our newsletter gives you access to a curated selection of the most important stories daily.

Specially For You

- Advertisement -

Recommended

- Advertisement -
- Advertisement -