The day in the markets: the Fed contributed to the decline in European markets

The day in the markets 06 / 01 / 22 William Hunter Visitors: 42 Rating: ★★★★★

The pan-European Stoxx Europe 600 index declined 1.3 percent on Thursday., Germany's DAX fell 1.4 percent., the French CAC 40 went down 1.7 percent., and the British FTSE 100 lost 0.9 percent.

Investors did not like what they read in the minutes of the December Fed meeting, published on Wednesday evening. According to him, in the face of high inflation, the Fed is ready to start raising interest rates before the US economy reaches full employment. In addition, investors learned that, according to members of the Federal Open Market Committee, support the economy through the purchase of bonds is no longer necessary.

"This year we may see a shift from ultra-loose monetary and fiscal policy to less accommodative monetary policy and less expansionary fiscal policy. This may have some impact on risky assets, which have risen because the discount rate has been so low, " said Kathy Jones, Head of fixed income at Charles Schwab.

The minutes of the Fed meeting on Wednesday caused a sharp revaluation of mainly technology companies, and also on Thursday in Europe, this sector led the declines. The Stoxx Europe 600 technology index lost 2.4 percent., although during the day was temporarily more than 4 percent. minus.

Holders of Carrefour shares had reason to be satisfied on Thursday - the exchange rate rose by 6.5 percent. after the information that Auchan is to make a takeover offer competitor in the retail industry.

EQUITY MARKETS

The S & P 500 is up 0.4 percent., Dow Jones industrial falls 0.1 percent., and Nasdaq COMP. it's going up 0.4 percent.

IBM is down 2.3 percent., and apple falls 1,1 percent.

The VIX index, a measure of expected volatility and an instrument for assessing sentiment, is down to 19.57 points.

In Japan, the Nikkei 225 fell 2.9 percent.

BOND MARKETS

The yield on the 10-year UST is rising by 4 PB to 1.74 percent. and it is the highest since March 2021, and the yield on 30-year bonds rising by 3 pp to 2.12 percent.

The yield on 10-year German bunds remains at -0.07%.

The yield on 10-year Japanese bonds rose by 5 pp to 0.126 percent. and it's the highest since April last year.

Currencies

The dollar is quoted unchanged against a basket of currencies, at the level of 96.17 points.

The eurodollar is down 0.1 percent. to 1,1305.

USD / JPY is down 0.3%. to 115.79.

The pound is down 0.15 percent. against the dollar to 1.3537.

Raw materials

On the oil market, contracts for WTI for February are valued at $ 79.92 per barrel, after an increase of 2.7 percent., March Brent futures are up 1.7%. up to 82,51 USD / B.

Silver is down 4.3 percent. gold is down 2.0 percent to $ 22,165 an ounce. to $ 1,788.50 an ounce.

DATA AND MONETARY POLICY

Orders in German industry rose by 3.7 percent in November. MDM-said the federal statistical office in the message. Analysts had expected MDM orders to rise 2.3 percent., after falling a month earlier by 5.8 percent.

China's services PMI was 53.1 in December. against 52.1 pts. last month-reported Caixin and Markit Economics. Analysts had expected 51.7 points.

The PMI, indicating the economic situation in the service sector in the UK, was 53.6 points in December. against 58,5 pts. at the end of last month-reported in the final calculation of the Chartered Institute of purchasing and supply and Markit Economics. Initially, it was predicted that the index will be 53.2 points.

The number of announced layoffs in the U.S. in November fell by 75.3 percent. compared to the same period in 2020, after a decline of 77 percent. a month earlier-according to a report by Challenger, Gray & Christmas Inc. The number of planned layoffs was 19,052 in September.

The number of people applying for the first time for unemployment benefits last week in the U.S. was 207 thousand. - informed the US Department of labor in a statement. Economists had expected that the number of new unemployed will be 197 thousand. against 200,000. previously, after a correction of 198 thousand.

The number of unemployed continuing to receive benefits amounted to 1.754 million in the week ended December 25, according to the U.S. Labor Department. Analysts had expected 1.688 million against the previously reported 1.718 million, after adjustment from 1.716 million.

CALENDAR FOR FRIDAY

at 8.00 in Germany-industrial production for November;

at 8.00 in Germany-balance of payments, exports and imports in November;

at 8.45 in France-industrial production for November;

at 9.00 in Hungary - industrial production in November;

11 a.m. eurozone-first reading of CPI and core CPI inflation from December;

at 11.00 in the Eurozone-industrial production for November;

at 14.30 in the US-new jobs in non-agricultural sectors in December;

at 14.30 in the US - hourly wages and weekly working time;

at 14.30 in the US-the unemployment rate for December. (PAP business)


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