Markets Struggle Before Rate Decisions
Sumaira FH Published January 30, 2023 | 10:46 PM
Stock markets wavered on Monday with central banks set to lift interest rates again later this week in their battle against high inflation
London, (UrduPoint / Pakistan Point News - 30th Jan, 2023 ):Stock markets wavered on Monday with central banks set to lift interest rates again later this week in their battle against high inflation.
Wall Street was off almost half a percent two hours into trading, and Paris and Frankfurt both gave up 0.2 percent at the European close.
London added 0.3 percent at the close, 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-point increases.
The Bank of England and the European Central Bank will then unveil their latest decisions one day later, 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 that last year's monetary tightening campaign by policymakers is beginning to kick in, with price rises beginning to slow from their multi-decade highs.
For Michael Hewson, chief market analyst at CMC Markets, "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 also caused 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.
"News it is suspending VIP accounts in the Middle East over best practices not being followed over money laundering is incredibly damaging," Mould said.
"Combine that with the announcement of CEO Itai Pazner's immediate departure and the market is likely to draw its own conclusions," he added.
- Key figures around 1645 GMT - New York - Dow: DOWN 0.4 percent at 33,849.07 points 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 4,159.20 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: UP at $1.0869 from $1.0868 on Friday Pound/dollar: DOWN at $1.2372 from $1.2382 Euro/pound: UP at 87.81 pence from 87.77 pence Dollar/yen: UP at 130.37 yen from 129.88 yenBrent North Sea crude: DOWN 0.1 percent at $86.59 per barrelWest Texas Intermediate: UP 0.1 percent at $79.73 per barrel
Related Topics
Recent Stories
SIU arrests robbery gang targeting bank customers
Asia Cricket Week from April 28
PSA World C'ships in May
Food Safety Authority raids hospitals' canteen across KP
US Fed's favored inflation measure accelerates in March
Kenya flood death toll since March climbs to 70: govt
Rafiq-ul-Hujajj Committee to organize 2nd training session for pilgrims in Abbot ..
Defence Minister leads Pakistan's delegation to Kazakhstan SCO moot
PRCS Chairman, Moroccan envoy discuss humanitarian relations
50pc cut in subsidy of BRT service likely: CM’s aide
Russia striking Ukraine railways to 'paralyse' army cargo: Ukraine source
Cop, suspected outlaw injured in police encounter
More Stories From Business
-
50pc cut in subsidy of BRT service likely: CM’s aide
1 hour ago -
PSX gains 771 points
2 hours ago -
Pakistan, US hold 7th TIFA meeting to strengthen trade and investment ties
2 hours ago -
Meeting held to streamline trade between Pak-Afghan , Central Asian Republics
2 hours ago -
Coca-Cola invests an additional $22 million in Pakistan
2 hours ago -
SECP Introduces SECP-XS: A swift complaint resolution platform
2 hours ago
-
SBP to announce monetary policy on April 29
2 hours ago -
London stocks hit new record peak on takeovers
2 hours ago -
Rupee sees slight recovery against US dollar
2 hours ago -
Kitchen items’ prices ease as weekly inflation falls by 1.1%
4 hours ago -
Shipping Activity at Port Qasim
5 hours ago -
Yen falls further as Bank of Japan stands pat on rates
2 hours ago