[Economics] FED interest rate hike.

[Wassim]

 

US stocks on Thursday were pulled down by fears of interest rate hike by the Federal Reserve. Rise in bond yields also fuelled the selloff in shares.
The S&P 500 fell 0.33% at 4,389.6. The Dow Jones Industrial Average dropped 0.42% at 34,619.25 points. The Nasdaq Composite lost 0.67% at 13,384.01
The Fed minutes released on Wednesday showed that the central bank has likely not finished raising interest rates.
“Most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy," the minutes said.
The 10-year treasury yield rose at 4.28% after touching its highest level since October.
A labor department report on Thursday showed the number of Americans filing new claims for jobless benefits fell in the last week. It suggests that the labor market remains tight despite the Fed's efforts to cool the economy and inflation.
Shares of Meta Platforms sank 3.1% and Tesla 2.8%. Apple slipped 1.5%. Shares of Exxon Mobil gained 1.9% and ConocoPhillips 1.8%. Cisco Systems  jumped 3.3%. The S&P 500 bank index edged down 0.2%.
Currencies The US dollar fell at 146.18 Japanese yen from 146.24. Against the euro, it fell at $1.0858 from $1.0880.
Europe European shares fell on Thursday, on slew of downbeat earnings and rising bond yields. The pan-European STOXX 600 edged lower 0.9%. Britain’s FTSE 100 edged down 0.6% at 7,310.21 points. Germany’s DAX fell 0.7% at 15,676.90. France’s CAC 40 was down 0.9% at 7,191.74. The 10-year government bond yields rose across the Europe. The industrial index declined 2.8%, dragged down by a 39% tumble in Dutch payments processor Adyen NV. Luxury sector index dipped 1.9%.
Asia In Asian markets, Hong Kong’s Hang Seng index ended flat at 18,326.63. China’s Shanghai – Composite added 0.4% at 3,163.74. Japan’s Nikkei 225 dropped 0.4% at 31,626. Australia’s S&P/ASX 200 index lost 0.7% at 7,146 points. New Zealand's benchmark S&P/NZX 50 index slipped 0.95% at 11,651.58 points.
Energy prices The US benchmark crude oil for September delivery added $1.01 at $80.39 a barrel on Thursday. Brent crude for October delivery rose 67 cents at $84.12 a barrel. Natural gas for September delivery rose 3 cents at $2.62 per 1,000 cubic feet.

 

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