They see the longest line the global stock market has lost in two months Business and Economic News

Global stock sales reached their longest run in two months on Wednesday as rising commodity prices and rising U.S. inflationary pressures led to earlier interest rate hikes and higher bond yields.

There was a limited recovery in the equity market in early European trading as the continent’s STOXX 600 index rose 0.4 per cent after Tuesday’s fall.

It was the leader of the FTSE 100 in London, driven by data showing a pandemic-affected economy in Britain, which grew more strongly than expected in March.

MSCI’s broadest Asia-Pacific Japanese stock index fell 0.9 percent, hitting its lowest since March 26.

After hitting record highs earlier in the week, MSCI’s share of shares around the world fell 0.2%, the third consecutive day of losses, the longest-running line since March 4th.

Investors ’outlook was blocked in the U.S. Consumer Price Index report released by the U.S. Department of Labor at 12:30 p.m., as analysts expected a 3.6% year-over-year rise in prices, driven by last April’s low base.

U.S. Treasury yields remained tight. The performance of the 10-year Treasury benchmark fell to 1.6130 per cent, below the last highs at the end of March and far from the 1.9 per cent level in early 2020 before the coronavirus pandemic.

Eurozone bond yields kept below last highs touched on Tuesday. Germany’s 10-year yield fell 1 basis point to -0.17 percent, reaching its highest value since Tuesday, 2020, at -0.152 percent.

Fears of inflation

Analysts say fears of inflation and some investors who reduce exposure to excessive stocks or sectors are behind the recent decline.

“It’s a battle of two narratives: reflection and one in the 20s, creating higher levels of fiscal stimulus growth; and the other is a longer idea that inflation is ultimately difficult to generate and interest rates remain low,” said Kiran Ganesh of UBS Global Wealth Management in London. responsible for multi-assets. “These two narratives are conflicting and at the same time in the minds of investors.”

The Japanese Nikkei reversed initial gains to a 1.9 percent drop, and the Taiwan benchmark index fell 6 percent to the levels seen in February, fearing it could raise the COVID-19 alert level in the coming days, leading to the closure of stores. as infections in non-essential elements increase.

The S&P 500’s E-mini futures stumbled 0.2 percent while Nasdaq technology futures fell 0.5%.

Limited fear

Analysts, however, questioned whether the broader sale of shares would be much more widespread in an easy world of adaptive and highly fiscal policy.

“Despite the severity of the moves, we were shocked that many of our customers’ conversations used the weakness (weakness) as an opportunity to buy a bathtub, especially in value-oriented areas such as banking, energy and insurance, ”analysts JPMorgan wrote. a note.

The equity trajectory barely helped bring safe havens to the green dollar, even though futures indicated another negative for Wall Street.

“It’s been unusual for the last two days that stock market austerity hasn’t given the U.S. dollar a significant rise,” said Alvin T. Tan, head of Asia FX strategy at RBC Capital Markets.

The dollar was positioned against the 2.5-month low as traders held on to bets that the Federal Reserve would remain steadfast in its simple policy implementations before the US consumer price index data was released before a significant year-on-year rise. inflation.

The U.S. Federal Reserve expects higher inflation, although officials have noted temporary factors in the temporary rise and the underlying effects.

The dollar index, the green dollar that measures against the six major currencies, was flat at 90,211.

The currency of major natural resource providers, for example, has been as good as Canada among rising commodity prices.

Loonie was not far from a height of 3.5 years at 1.2078 C.

The Australian dollar, another commodity price representative, rose to a $ 0.7811 high on Monday from a 10-week high.

Oil prices were higher as U.S. crude rose 1 percent to $ 65.94 a barrel. Crude Brent added 0.9 percent to $ 69.20 a barrel.

Copper prices rose and were not very successful at the start of the week, with three-month copper on the London Metal Exchange rising 1.1 per cent to $ 10,579 a tonne. The gold point was 0.2 percent lower at $ 1,832 an ounce.

In cryptocurrencies, the ether set a new record on Monday and eventually valued at $ 4,315.41. The value of the second largest digital token has risen more than 5.5 times this year.