Global stocks are higher than the result of the Fed meeting

Global stocks rose higher before the end of a two-day political meeting of the US Federal Reserve on Wednesday, which will give investors an overview of how officials assess inflation forecasts.

The S&P 500 was stable in early trading, but the technology-focused Nasdaq Composite rose 0.3 percent. The European Stoxx 600 Index rose 0.2 percent in the Atlantic Ocean, և as much as the UK FTSE 100.

Leading engines in the United States included a number of energy companies, including Diamondback Energy, ExxonMobil, Occidental Petroleum և Halliburton, as oil demand remained high due to the elimination of epidemic curbs.

The global benchmark for Brent crude rose 0.6 percent to $ 74.46 a barrel, the highest level since April 2019. The American brand West Texas Intermediate rose by 0.2% to $ 72.26 per barrel, which is the strongest since October 2018.

“The general feeling is that this is probably too good to be true,” said Luca Paulini, chief strategist at Pickett Asset Management, referring to high-stakes shares on both sides of the Atlantic. “But as long as the world economy continues to function well, the market will continue to grow.”

The “spotted plot” released by the Federal Reserve on Wednesday will give an idea of ​​how high US central bankers expect inflation to rise this: next year.

“The main component of watching Wednesday’s press conference is the letter of thanks from the Fed chairman [Jay] “Powell is in the process of being discussed,” said Daniel DiMartino Booth, chief executive of Quill Intelligence.

The appointment of Lina Khan, the ombudsman, as chairman of the Federal Trade Commission, did not appear to have had a significant impact on Big Tech, with little movement from Apple, Amazon, Facebook or Alphabet during the morning trading session.

Inflation in the UK in May rose According to figures released on Wednesday, 2.1 per cent year-on-year, reflecting higher spending on food and food, exceeds the Bank of England’s 2 per cent target. Last month, the BoE said it would slow down its bond-buying program, although it emphasized that this did not mean a change in policy.

Pickett Paolini said the prospect of inflation in the UK would affect labor shortages in many sectors, noting that there was already instantaneous pressure on wages.

The world’s central banks are struggling to cope with rising inflation, although policymakers in Europe and the United States have said rising prices are a temporary effect of economic reopening.

“This is not a local phenomenon,” said Willem Sells, chief investment officer at HSBC Private Banking և Wealth Management. “We see rising inflation in the world because of the base effects of the price of gasoline [in] Compared to last year ‘s low oil prices, some barriers to the supply chain և retail և increase in demand for hospitality.

Investors in the US predict that Fedel’s discussion with the Fed on when to start cutting the monthly asset scheme may begin right away. WednesdayThe European Central Bank said last week that it would stick to its bond-buying plan.

Bonds have been stable on both sides of the Atlantic since last week’s global rally, despite stronger inflation forecasts, which usually make their attractive interest rate payments less attractive.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button