Organizational changes
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The European stock market is booming, with traders taking over money and electronics companies that seem to be benefiting from higher inflation and interest rates.
The Stoxx 600 region rose 0.7% in the morning in London, its banks have a low index of 1.6 percent and energy producers adding 2.2%.
The price hike came after Federal Reserve officials said the US economy had recovered from the epidemic to trigger a massive economic outburst.
Future futures show that the S&P 500 will gain 0.6% early in New York, while the technical Nasdaq 100 will rise by 0.5%. Wall Street market diminished last week but stay close to their longer duration.
Patrick Harker, chief of the Philadelphia Federal Reserve, asked the Nikkei that “markets are thriving”. The central bank of US $ 120bn a month to buy bonds, which was introduced in March 2020 to promote lending and eradicate the epidemic, “will no longer work,” Harker said.
His comments came after Cleveland Fed CEO Loretta Mester on Friday said the U.S. economy had changed enough to cut stock.
“The signs of recovery are green,” said Gregory Perdon, chief financial officer at Arbuthnot Latham. way which includes buying shares in financial enterprises that benefit from high interest rates and other shares whose assets are based on economic growth.
When the money starts to recoup the expenses it can spend, the next step could be to raise interest rates from lower numbers. Financial experts interviewed by the Financial Times expect that the first resurrection next year.
Fund managers continued to buy stocks in the region, says Perdon, believing that financial institutions could do better in more financial books than in states, while yields remain low in times of crisis.
“The inflation rate is high and it shows that the interest rate hike is high,” he said.
“There is also the pressure to pay because every time we see red [in stock markets] we think this is a business opportunity to help save money that can be wasted. ”
More Tuesday is expected to show the rise in consumer prices in the US more than 5 percent in August for the third month in a row.
Yields over 10 years of US Treasury were stable at 1.338% on Monday, after a shot higher On Friday when traders sold the loan in response to US company prices rising sharply than economists predicted.
The dollar, which measures the greenback against the six previous currencies, gained 0.2 percent. Brent crude, a report oil, earned 1.2% to $ 73.77 a barrel. The euro fell 0.3% against the dollar to $ 1.1782.
In Asia, the Hang Seng series in Hong Kong fell by 1.5 percent after the Chinese government was encouraged by struggle on the technicality of this country by moving to enough Alipay, a program with more than 1bn users and Jack Ma’s Ant Group. The CSI 300 index for China shares lost 0.4%.