Stocks on track for biggest weekly fall of the year | – #Stocks #track #biggest #weekly #fall #year
LONDON, Feb 24 (Reuters) – Global shares eased to their biggest weekly drop of the year on Friday, although investors took heart from a short-term dip in government bond yields as the Bank of Japan’s new chief ruled out an early end to super. easy monetary policy.
Moscow’s “special military The first anniversary of Russia’s invasion of Ukraine, which it called “operation,” was also in the spotlight, as calls for peace came from both Washington and Beijing, while warnings of a wider escalation.
Europe markets failed to maintain a positive start, with the Euro Stoxx 600 (.STOXX) down 0.1%, Wall Street futures pointing to a red start and MSCI’s main global index (.MIWD00000PUS) down 0.2%. 1.7% per day and week.
Europe’s moves this month are partly due to a pause in a sharp rise in global borrowing costs compensation done – january the bearish trend has reversed.
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April Incoming Bank of Japan (BOJ) governor Kazuo Ueda warned overnight of the dangers of responding to spending in a hearing that confirmed ultra-low interest rates are still needed to support Japan’s fragile economy. – driven by monetary tightening inflation. read more
Europe’s benchmark bond yields fell back from 2011 highs as Germany said the bloc’s industrial heartland economy shrank slightly more than initially forecast in the fourth quarter of 2022.
Dollarpreferred by the Federal Reserve inflation having an event january for the bear USA)’s personal consumption expenditures (PCE) rose again ahead of price index data. The index is expected to increase by 0.4% compared to the previous month and 0.3% compared to the previous month.
Robert Alster, chief investment officer at Close Brothers Asset Management, said markets are currently optimistic about the strength of consumer spending in many major economies, but are also concerned that inflation will remain higher for a longer period of time and interest rate hikes will be extended.
“So it all depended on each data point,” Alster said. “There’s a feeling it’s going to be volatile, a bit like cautiously optimistic skating on thin ice,” he said. “We are now virtually neutral across all asset classes.”
Global markets in 2023
Wall Street remained on course for its worst week of the year ( .SPX ), but pointed lower again after ending a choppy Thursday in positive territory for the first time in five sessions. (.N)
USAExpectations for longer-term interest rate hikes have weighed on the world’s top currency against six major peers. dollars means that the index rose to the highest level in seven weeks – 0.25% and reached 104,859. /FRX
On Thursday, an unexpected drop in new jobless claims and a revised uptick in the fourth-quarter PCE price index showed some continued strength in the world’s largest economy. offer did
“If today’s US PCE deflators push the 2Y US Treasury yield above the Fed Funds Rate range of 4.5-4.75%, the US Dollar Index should extend its rally towards 106,” analysts at DBS Bank said.
A year after Russia sent troops to Ukraine, the loss of life and long-term geopolitical consequences remained the focus, even as the spillover of the war had a major impact on financial markets.
Aaron Dunn, co-chairman of value equity at Eaton Vance, most notably oil when the war broke out, gas and village said that there was a sharp increase in farm prices. Note that most of these movements were completely reversed.
“In the second half of 2022, you’ve taken back quite a bit of the gains in most of the energy markets,” Dunn said, adding that after a mild winter, natural gas pointed out that the drop in prices means that the use of gas is now replacing coal again in Europe. .
“It helped the global economic picture,” he said. “The big question now is the bottom line, the economic performance, and in that respect the reopening of China will play a big role in where we go from here.”
War weighs on markets
BOJ chief-elect Ueda’s overnight comments on Japan’s easy monetary policy saw Japan’s Nikkei share index (.N225) close up 1.3%, while the yield on five-year government bonds eased to 0.235%.
Ten-year Japanese bonds were not trading on Friday as liquidity weakened after breaking above the BOJ’s policy threshold for two days. The yen weakened as the data also showed core consumer inflation hit a 41-year high, putting pressure on the BOJ to phase out its stimulus program. read more
Meanwhile, MSCI’s broadest index of Asia-Pacific shares outside Japan ( .MIAPJ0000PUS ) was down 2.5% for the week, down 1.3%.
In particular, Chinese blue chips (.CSI300) fell 1% and Hong Kong’s Hang Seng Index (.HIS) fell 1.6% after comments by US officials that Washington would increase the number of troops helping to train Taiwanese forces.
In bond markets, the benchmark Treasury yield, or the cost for the US government to borrow in international debt markets, eased to 3.8590% before rising to 3.9101%.
After the bloc said the economy of industrial powerhouse Germany shrank slightly more than forecast in the fourth quarter of 2022 Europe benchmark yields also fell.
of Germany 10 they rebounded ahead of US trade, although annual government bond yields reached 2.49%, hitting a 2011 high earlier in the week after stronger-than-expected euro zone PMI.
In the oil market, Brent oil futures increased by 0.8% to $82.84, while US West Texas Intermediate (WTI) futures increased by 0.8% to $75.99.
1,824.89 per ounce of gold dollars the spot price rose partially, although the downward course continued for the fourth consecutive week.
Reporting by Marc Jones; Edited by Robert Birsel and Chizu Nomiyama
Our standards: Thomson Reuters Trust Principles.
2023-02-24 17:19:28
Source – reuters
Translation“24 HOURS”