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Global markets waver after rate hikes in Europe, Asia, US – WHIO TV 7 and WHIO Radio

US futures edged higher on Thursday as central banks in Europe and Asia tightened monetary policy after a big rate hike this week by the US Federal Reserve.

Dow Jones Industrial futures were up 0.2% and S&P 500 futures were up 0.1%.

Wall Street’s benchmark S&P 500 index fell 1.7% to a two-month low. The Fed raised key lending rates on Wednesday It rose 0.75 points to a 14-year high. The Federal Reserve has indicated that he expects interest rates to be one percentage point higher by the end of the year than they were three months ago.

“The Fed has still been able to outsmart the market,” Fidelity International’s Anna Stupnitska said in a report. It shows that it is

London and Frankfurt have since declined central bank of switzerland He also raised the benchmark lending rate by 0.75 percentage points, the highest ever, and said further increases “to ensure price stability” could not be ruled out.The Bank of England to raise rates 0.5 points, similar to the Central Bank of the Philippines.Norway raised the base interest rate likewise.

Sweden rendered almost all economists indifferent This week on a full point hike d.

The Federal Reserve (Fed) and central banks in Europe and Asia are raising interest rates to slow economic growth and curb inflation at its highest level in decades.

Traders worry that it will hurt the growth of the global economy. Fed officials admit such offensive potential Rate hikes could bring about a recession But inflation must be brought under control, he says. They point to the relatively strong U.S. job market as evidence that the economy can withstand rising borrowing costs.

EY Parthenon’s Gregory Daco said in a report: “The Fed’s new economic forecast emphasizes allowing recession to keep inflation down.

In Asia, the Shanghai Composite Index fell 0.3% to 3,108.90, while Tokyo’s Nikkei 225 fell 0.6% to 27,153.83. Hong Kong’s Hang Seng fell 1.7% to 18,134.63.

South Korea’s Kospi fell 0.6% to 2,332.31 and India’s Sensex fell 0.2% to open at 59,304.34.

New Zealand, Bangkok and Jakarta rose while Singapore fell.

The two-year Treasury yield, or the difference between the market price and the payout if held to maturity, rose to 4.09% on Wednesday from 3.97% at the end of Tuesday. It is trading at its highest price since 2007.

Yields on 10-year government bonds, which affect mortgage rates, have returned to 3.55% from 3.56%.

Fed Chairman Jerome Powell underscored his determination to raise interest rates high enough to push inflation back toward the central bank’s 2% target. said it was just beginning to reach

The US central bank has raised its benchmark interest rate. Affects many consumer and business loans, in the range of 3% to 3.25%. This is the fifth rate hike of the year and a start of the year from zero.

The Fed released a forecast, known as the ‘dot plot’, showing that it expects the benchmark interest rate to reach 4.4% by the end of the year.

US consumer prices rose 8.3% in August. This is down from his July peak of 9.1%, but core inflation, which excludes volatile food and energy prices to get a clearer picture of trends, rose 0.3% in July. From the previous month he rose to 0.6%.

The global economy has also been disrupted by Russia’s invasion of Ukraine, pushing up the prices of oil, wheat and other commodities.

In energy markets, benchmark US crude rose 89 cents to $83.83 a barrel on the New York Mercantile Exchange electronically. The contract fell $1 to $82.94 on Wednesday. Brent crude, the benchmark for international oil trading, rose 86 cents to $90.69 a barrel in London. It last traded 79 cents lower at $89.83.

The dollar fell to 141.42 yen from 143.46 yen on Wednesday.

The yen fell to a 24-year low against the dollar after Japan’s central bank left its main lending rate unchanged, before rising after banks’ intervention in the foreign exchange market.

The euro fell from 99.09 cents to 98.63 cents.

A major Wall Street index is on pace for its fifth weekly loss in six weeks.

On Wednesday, the Dow fell 1.7% and the Nasdaq Composite fell 1.8%.


McDonald’s reported from Beijing. Ott reported from Washington.



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