Markets Struggle Before Central Bank Rate Decisions
Faizan Hashmi Published January 31, 2023 | 05:38 PM
Stock markets wavered on Monday with central banks set to lift interest rates again later this week, as policymakers battle high inflation
New York, (UrduPoint / Pakistan Point News - 31st Jan, 2023 ):Stock markets wavered on Monday with central banks set to lift interest rates again later this week, as policymakers battle high inflation.
Wall Street retreated with the tech-heavy Nasdaq Composite Index shedding two percent, and Paris and Frankfurt both gave up 0.2 percent at the European close.
London added 0.3 percent, however, while Shanghai and Tokyo also finished higher as mainland Chinese markets reopened from holidays.
The US Federal Reserve is forecast Wednesday to lift interest rates by just 25 basis points, down from a half-point hike last month, which followed four straight 75 basis point increases.
The Bank of England and the European Central Bank are set to unveil their policy decisions one day after, with more hikes on the radar.
"Stocks were on the back foot... as attention shifts to this week's vital Federal Reserve meeting, as well as supporting acts in the shape of ECB and BoE," said Markets.com analyst Neil Wilson.
For Chris Beauchamp, chief market analyst at online trading platform IG, "the new week has seen stock markets struggle to make headway, as investors fret about the hectic days to come." - Recession fear - The central bank meetings come as a string of recent data suggests last year's monetary tightening campaign by policymakers is beginning to kick in, with price rises starting to slow from multi-decade highs.
Michael Hewson, chief market analyst at CMC Markets, said "trading (is) likely to remain subdued until this week's central bank meetings are out of the way." There is trepidation on trading floors that economies could still slip into recession, while a mixed earnings season so far has raised concern about company profits.
Official data showed that the economies of Germany and Sweden unexpectedly shrank in the last quarter of 2022.
In London on Monday, Ryanair made record third-quarter profits on soaring bookings but shares in gambling firm 888 tanked 27 percent after chief executive Itai Pazner resigned amid news of a probe into Middle East operations.
The company added in a statement that it has suspended VIP activities in the region pending the outcome of its internal investigation.
"Gambling stocks are under enough regulatory scrutiny as it is without inviting reasons for further attention and yet that's exactly what 888 has done," said AJ Bell investment director Russ Mould.
The economic agenda also includes quarterly results from tech heavyweights such as Apple and Amazon, as well as from industrial companies including ExxonMobil and General Motors.
Earnings have generally topped expectations so far, but investors have been troubled by downbeat forecasts by many companies, said Hugh Johnson of Hugh Johnson Economics.
- Key figures around 2140 GMT - New York - Dow: DOWN 0.8 percent at 33,717.09 (close) New York - S&P 500: DOWN 1.3 percent at 4,017.77 (close) New York - Nasdaq: DOWN 2.0 percent at 11,393.81 (close) London - FTSE 100: UP 0.3 percent at 7,784.87 (close) Frankfurt - DAX: DOWN 0.2 percent at 15,126.08 (close) Paris - CAC 40: DOWN 0.2 percent at 7,082.01 (close) EURO STOXX 50: DOWN 0.5 percent at 4,158.63 (close) Tokyo - Nikkei 225: UP 0.2 percent at 27,433.40 (close) Hong Kong - Hang Seng Index: DOWN 2.7 percent at 22,069.73 (close) Shanghai - Composite: UP 0.1 percent at 3,269.32 (close) Euro/dollar: DOWN at $1.0854 from $1.0874 on Friday Pound/dollar: DOWN at $1.2353 from $1.2395 Euro/pound: UP at 87.84 pence from 87.65 pence Dollar/yen: UP at 130.43 yen from 129.80 yenBrent North Sea crude: DOWN 2.0 percent at $84.90 per barrelWest Texas Intermediate: DOWN 2.2 percent at $77.90 per barrel
Related Topics
Recent Stories
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 8 May 2024
Today Gold Rate in Pakistan 08 May 2024
Delegation of international investors meets Finance Minister
Federal Govt stands with Balochistan for its development: Naqvi
UAE President receives condolences of Prime Minister of Pakistan over passing of ..
ECC approves to enhance wheat procurement targets
UN urges Israel to 'stop escalation' as tanks enter Gaza's Rafah city
EU stumps up $125 mn for Yemen after aid groups' plea
Governor Tessori condemns May 9 riots, calls it a 'pre-planned conspiracy'
PM condoles with UAE President over Sheikh Tahnoun’s death
Milan nets Giro 4th stage, Pogacar retains lead
UBS back in profit after Credit Suisse takeover losses
More Stories From Business
-
Exchange rates for currency notes
23 minutes ago -
Foreign exchange rates
53 minutes ago -
Currency Rate In Pakistan - Dollar, Euro, Pound, Riyal Rates On 8 May 2024
2 hours ago -
Today Gold Rate in Pakistan 08 May 2024
2 hours ago -
Delegation of international investors meets Finance Minister
11 hours ago -
ECC approves to enhance wheat procurement targets
11 hours ago
-
UBS back in profit after Credit Suisse takeover losses
11 hours ago -
Minister for Planning, Development and Special Initiatives Ahsan Iqbal leaves for China
13 hours ago -
Stock markets mostly rise on lower rates optimism
13 hours ago -
AFD mission visits Faisalabad, gets updates of various projects
13 hours ago -
Pakistan and China deepen collaboration on CPEC Phase-2
13 hours ago -
Stock markets mostly rise on lower rates optimism
13 hours ago