Money News Wall Street takes a breath, although markets are heading...

Wall Street takes a breath, although markets are heading towards their worst week of the year and investors take refuge in the dollar


- Advertisment -

Stock markets suffer the impact of the acceleration of inflation in the US. For traders, the only place to seek refuge was the dollar.

Global stocks were heading into their worst week of the year on Thursday, as a higher-than-expected acceleration of inflation in the United States worried bond markets and caused sudden stops in the hot prices of metals, crops and cryptocurrencies. For traders, the only place to seek refuge was the dollar.

However, in early US trading, stocks rose, with a rise led by Nasdaq, following data that showed fewer people applied for unemployment benefits in the past week.

At the open, the Dow Jones Industrial Average was up 37.08 points, or 0.11%, at 33,624.74 points; the S&P 500 index rose 11.95 points, or 0.29%, to 4,074.99 units; and the Nasdaq Composite added 119.26 points, or 0.92%, to 13,150.94 units.

Asia received a strong post-Wall Street shock, London’s FTSE was down 2% before lunch, the US bond, commodity and futures markets were submerged in a deep sea of ​​red and Elon Musk and Tesla were no longer accepting more payments with bitcoins.

While there are all kinds of explanations, the rationale is rising inflationary pressures in the United States, which could force the Federal Reserve to start restricting its cheap money, which has been pushing markets hard.

Core resources and the oil and gas sectors, some of the most advanced in recent times thanks to the increase in the price of raw materials, fell more than 2%, while crude oil lost more than 2% at the same time. 1227 GMT, its worst day in six weeks.

“Inflationary pressures are going to continue to rise and they are not going to be temporary,” said Jeremy Gatto of Unigestion. “What does that mean? Surely (interest) rates will go up.”

MSCI’s global equity index, which includes 50 countries, was down 0.6%, heading for its fourth day followed by losses and a weekly slide of close to 4%, which would be the biggest since October.

Wall Street futures fell 0.4% after sinking the day before after it was learned that consumer prices in the United States experienced their biggest advance in almost 12 years in April.

The yield on benchmark 10-year US Treasuries was at 1.68%, after rising 7 basis points overnight, its biggest gain in two months.

“The big question today is not how much inflation is going to go up, but how long is it going to do so,” said Hugh Gimber of JPMorgan Asset Management. “On today’s downturn (in global markets), I think it’s actually underscoring how uncomfortable investors are with evaluating the new Fed mandates. They still don’t fully understand when the Fed will move.”

Against a basket of prominent currencies, the dollar rose to 90,759 units, far from Wednesday’s 10-week low of 89,979.

In cryptocurrencies, bitcoin stabilized at $ 50,830 after losing 13% after Elon Musk announced that Tesla will stop accepting it as a means of payment for the large amount of fossil fuels it uses in its “mining” work.

Ether, the world’s second-largest cryptocurrency, was down 2.3% to $ 3,735. Metals and crops were also retreating. Copper was down 1.6% after hitting an all-time high earlier in the week, while corn, wheat and sugar were down 1% -2%.

Ben Pence
Ben Pence is a The Advertiser Mirror correspondent who covers politics, business, money, lifestyle, technologies and worldwide news. Ben is a talented guy of 22 years old who loves to write and record Podcasts as a part of his ideal to inform people about news and opinions.

Latest news

Someone paid $28 million to travel to space with Jeff Bezos

The traveler beat about 20 rivals in an auction that began on May 19 and whose last 10 minutes were broadcast on television.

The Covid-19 pandemic has encouraged child labor in Latin America

Some 8.2 million minors, between the ages of 5 and 17, work in Latin America and the Caribbean, a region that is "far" from eradicating this child activity due to the pandemic.

A estimate that global oil demand will stabilize by the end of 2022

Global oil demand is recovering at a strong pace this June and that trend should continue in the coming quarters, according to the International Energy Agency (IEA).

Bitcoin can’t break through $38,000, a key step in attempting a new shot

The main cryptocurrency is trading around US $36,000 this Saturday, after a week marked by instability.
- Advertisement -

Which countries top the ranking of earnings through Bitcoin

The blockchain company Chainalysis made an estimate of the profits obtained from Bitcoin transactions in 2020 according to the nationality of the investors.

Ed Sheeran announces the release of “Bad Habits”

British singer-songwriter Ed Sheeran announced on Friday the release of "Bad Habits", his first solo single in four years, which will be released on June 25.

Must read

- Advertisement -

You Might Also LikeRELATED
Recommended to you