The U.S. currency collapsed on Monday after a week of unsettled performance since February when an oil summit raised concerns about rising prices and future interest rates.
Wall Street’s S&P 500 index fell 1.5% in the afternoon in New York. The Nasdaq Composite, which focuses on technology, which includes companies whose high accountability is able to make their share prices relevant to interest rate changes, fell 2.4%.
“We are in a place that seems to be different from the Goldilocks,” said Cosimo Marasciulo, chief financial officer of the fund manager Amundi, referring to a financial environment where growth is justified but inflation. “We could be pushing for higher prices and higher interest rates.”
In Europe, the Stoxx 600 index closed 0.5%, following a 2% decline last week. London’s FTSE 100 fell 0.2%. The Hang Seng group program in Hong Kong had completed the same day 2.2% down.
The stock market comes at a time when Brent crude oil jumped 3.1% to three years of $ 81.74 a barrel as the opec production team following what is already there at their recent meeting, even rising natural oil prices are increasing the demand for oil. Members agreed this summer to add 400,000 barrels per production day each month by the end of next year.
West Texas Intermediate, US oil, hit $ 78 a barrel, the highest since 2014.
Yields over US Treasure’s 10-year forecast, which was offset by a sharp overdue by government debt and the Federal Reserve’s bid to reduce borrowing costs through the epidemic, rose 0.04 percent to 1.505%.
These yields, which move in line with the letter price, have risen from about 1.3% at the end of September because temporary inflation and market fluctuations are contributing to the Fed’s expectations of lowering its $ 120bn monthly rate.
The US economy is it is expected to fluctuate after vaccination with coronavirus vaccine in the first months of the year. Advertisers, meanwhile, are gripped by the prospect of a slowdown in the economy among high-tech companies as well severe disruption of retail machines due to the epidemic and the lack of staff.
Fed Chairman Jay Powell has said the central bank in November has announced a reduction in its monthly earnings. going forward in the labor market.
The next report on U.S. non-farm payrolls, which took place on Friday, “is probably the one that would encourage a donor in November”, said Jim Reid. Researchers interviewed by Bloomberg expect to see that US employers hired about half a million jobs last month.
The dollar, which tests the US dollar against six others, fell 0.2% after a year-on-year strike. Sterling increased 0.4% to $ 1.361.
The New Zealand dollar gained 0.2% against its US counterpart to $ 0.696. The Reserve Bank of New Zealand, which is meeting at its next financial summit on 6 October, is expected to raise interest rates by borrowing a quarter of a century to curb inflation.
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