Image: Reuters Berita 24 English - Stock markets decelerated on Thursday as the euro strengthened due to the restart of Russian gas shipment...
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| Image: Reuters |
Berita 24 English - Stock markets decelerated on Thursday as the euro strengthened due to the restart of Russian gas shipments to Europe ahead of the anticipated first interest rate increase by the European Central Bank in more than ten years to combat inflation.
After a 10-day interruption, the flow of Russian gas to Germany restarted, allaying for the time being fears about Europe's supply and potential economic consequences.
With predictions that the ECB would announce a significant 50 basis-point rate hike, the euro EUR=EBS moved up, pulling away from last week's parity against the dollar.
Vladimir Putin, the president of Russia, issued a warning that supplies could be further curtailed or even stopped, which prompted the EU to advise its members to minimise usage.
Putin's emotions will pull and push on European markets, according to Michael Hewson, chief market strategist at CMC Markets.
Markets are waiting to see how much the ECB will increase interest rates later on Thursday at 12:15 GMT; a 25-bps increase is fully priced in, according to Hewson.
A disintegrating government in Italy, one of the most indebted nations in the euro zone, has made it vital for traders to learn more about an ECB mechanism to control stress in the bond markets. FRX/
Rate increases from the Bank of England in August and the U.S. Federal Reserve the next week are both widely anticipated at this point, according to Hewson.
it is the STOXX index.
600 European company STOXX index fell by 0.4%. the stock index MSCI All-Country. MIWD00000PUS decreased by 0.14 %.
Following the fall of Mario Draghi's administration in the third-largest economy in the eurozone, Italian bonds IT10YT=RR experienced a dramatic decline in price.
The political unrest in Italy, according to Nadege Dufosse, head of cross-asset strategy at Candriam, is increasing pressure on the ECB to have its so-called anti-fragmentation weapon in place to restrict bond yields and calm markets.
"That is the major risk today, in my opinion, so I believe they will have to deliver. Investors must be persuaded of its efficacy "said Dufosse.
Investors will be attempting to determine whether the economy is destined for a soft or harsh landing as higher borrowing rates are absorbed after the most recent round of rate hikes, she added.
"The market's trend will mostly depend on predictions for the final quarter or the next year. Since we do not yet know the solution, we must be very practical "explained Dufosse.
Contrary to popular belief, the Bank of Japan maintained monetary policy as usual on Thursday and slightly increased its inflation projections. Yen/dollar exchange rate JPY=EBS remained constant at 138.37. (Entire Story)
S&P 500 futures EScv1 and Nasdaq 100 futures NQc1 both had declines of 0.25 and 0.2%, respectively. On Thursday, earnings were expected from Blackstone, Dow Chemical, Philip Morris International, Twitter, and American Airlines.
Beijing Clouds
Despite Tesla TSLA reporting numbers that were much better than anticipated, Wall Street indexes rose last night.
The upbeat atmosphere from O after hours couldn't continue over to the Asia session. (Entire Story). N
the largest Asia-Pacific share index outside of Japan according to MSCI.
Japan's Nikkei.N225 rose 0.4 percent while MIAPJ0000PUS dipped 0.1 percent.
The tight COVID-19 constraints on Chinese growth and new worries about the failing real estate industry are also lowering expectations for global demand.
Commodities that are susceptible to economic growth, like copper SCFc1 and iron ore SZZFc1, have been falling, and this week, borrowers' boycotts of mortgage payments on incomplete homes damaged Chinese banks and property companies.
In a note to clients on Thursday, ING analysts stated that "past due mortgages doubled during the week" and that "possible home purchasers are waiting for a general decline in home prices for the housing market, including finished projects."
"Even for developers with plenty of cash, this is bad."
The Chinese yuan CNY=CFXS strengthened marginally, reaching 6.7664 to the dollar. The dollar's value against other currencies stabilised after falling earlier in the week. The price of $0.68650 in Australian dollars AUD=D3 was.
A market indication that frequently portends a recession is the benchmark 10-year Treasury yield US10YT=RR holding around 3.0415 percent, below the 2-year yield US2YT=RR at 3.2359 percent. US/
After U.S. government data revealed weak gasoline consumption during the busiest summer driving season, demand concerns overcame tight global supply and oil prices fell for a second straight session.
U.S. West Texas Intermediate CLc1 down 2.6 percent to $97.32 a barrel, while Brent crude LCOc1 fell 2.25 percent to $104.50 per barrel.
