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Shares of the world have been mixed after cenbank statements

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© Reuters. FILE PHOTO: The electronic stock price chart is on display in a conference room on November 1, 2021 in Tokyo, Japan. REUTERS / Issei Kato

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Author: Elizabeth Dilts Marshall

NEW YORK (Reuters) – Global stock markets tumbled on Thursday as European equities rose as Britain and Norway raised interest rates and the ECB cut its large-scale bond buying program as global markets struggled to stay afloat. a day later. The reservation accelerated the tapering pace.

The European index rose 1.23% and MSCI’s worldwide stock gauge fell 0.13% after moving from positive to negative territory on US trading day.

In the United States, recent readings on rising producer and consumer prices and the rapidly spreading coronavirus variant Omicron have sparked anxiety.

The Nasdaq ended the day on a very low note as the Federal Reserve’s earlier decision to reduce it pushed investors into economically sensitive sectors and away from growth and technology stocks.

Oil stood at more than $ 75 a barrel, helped by record US implicit demand and declining crude stockpiles, as well as positive economic forecasts released by the Fed on Wednesday.

Shares in UK banks rose after the BOE raised rates by 0.15 percentage points to 0.25%, and took another blow after its central bank moved ahead with rate cuts.

It fell 0.08% to 35,897.64 and lost 0.87% to 4,668.67. It fell by 2.47% to 15,180.44.

It rose 2.13% to $ 72.38 a barrel, and rose 1.54% to $ 75.02.

It fell 0.409% and the euro rose 0.02% to $ 1,133.

US 10-year earnings were 1.4241%, while 30-year earnings were 1.8668%.

The Fed set a stage where the pandemic, despite the rise of Omicron, paves the way for a favorable economic condition, greatly easing inflation, raising interest rates slowly and keeping unemployment low.

Thursday’s data showed that the number of Americans filing new unemployment benefit claims rose sharply last week, although they remained at levels that matched harsh labor market conditions.

In addition, a survey showed that production at U.S. factories rose to a three-year high in November in almost three years.

“(After Wednesday’s Fed meeting), it’s hard to be excited about this turn of economic data, but so far it’s mostly supported by the Fed’s hawk trajectory,” said Edward Moya, an OANDA analyst.

The ECB in Frankfurt said it would cut its € 1.85 trillion purchase next quarter under the Pandemic Emergency Procurement Program (PEPP) and remove the March scheme in a long-term move.

However, PEPP’s profits will continue to reinvest until the end of 2024 and will increase the long but more rigid asset purchase program to limit the effects of the withdrawal.

“As a result, the new approach to quantitative easing is somewhat appropriate,” said Gurpreet Gill, macro-strategist, Global Fixed Income, at Goldman Sachs (NYSE 🙂 Asset Management.

The Norwegian central bank, following its economic rebound in September, continued with further gains as expected and said it was likely to. The Swiss National Bank kept rates at -75% blocked.

The Turkish lira fell to 5.6% on Thursday from a low of $ 15.689 after the central bank cut its policy rate, according to the unorthodox economic program set by President Tayyip Erdogan.

The dollar has doubled in value this year against the pound, affecting a large Turkish market economy. He is concerned about what will happen if low rates and stimulus continue to increase inflation ahead of the 2023 presidential election, which is already above 20%.

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