Monday, 17 June 2024
Trending
Stock Market

With strong US inflation statistics, Asian equities are divided

  • Asian markets were mixed; U.S. futures were flat and oil prices marginally increased.
  • Yoon’s senior presidential aides, including Prime Minister Han Duck-soo, tendered their resignations.
  • Traders’ wagers that the Fed may start lowering rates in June were drastically reduced.

Due to a decline in American stocks, Asian markets were mixed on Thursday; U.S. futures were flat and oil prices marginally increased.

Following the catastrophic defeat of the ruling conservative party in a parliamentary election, which dealt President Yoon Suk Yeol a severe political blow, South Korean shares saw little movement. Yoon’s senior presidential aides, including Prime Minister Han Duck-soo, tendered their resignations.

Asian stocks

Bond prices dropped, and Treasury rates jumped, adding to the pressure on the stock market. The Federal Reserve has been holding off on raising its target rate of 2% for inflation until it has more proof.

The concern currently is that inflation might be stuck following an encouraging reduction last year, as seen by the fact that inflation figures for January, February, and March were all hotter than anticipated and by data on the overall state of the economy.

As soon as the inflation data was released in the morning, prices of everything plunged, including gold and bonds. The yield on the 10-year Treasury returned to its November level late on Tuesday, rising from 4.36% to 4.54%. The two-year yield, which fluctuates more in line with expectations for Fed policy, surged to 4.97% from 4.74%.

Traders’ wagers that the Fed may start lowering rates in June were drastically reduced. They had six or more cutbacks through 2024 in their forecast at the beginning of the year. Elevated interest rates impede economic growth and depress investment values in an attempt to outpace inflation. There is concern that an extended period of high-interest rates could trigger a recession.

Real estate investment trusts, utility firms, and other equities that are often most negatively impacted by high-interest rates were among Wall Street’s worst losers on Wednesday.

Out of the 11 sectors that comprise the index, real-estate stocks saw the largest decline, falling 4.1%, in the S&P 500 index. By making mortgages more expensive, higher interest rates might have a chilling effect on the housing market.

Related posts
Stock Market

Morgan Stanley purchases a stake in L&T Finance; shares rise 8% in two days

L&T Finance shares rise 8% over two days after Morgan Stanley‘s acquisition. L&T…
Read more
Stock Market

Sensex up 76,800 points; Nifty Midcap 100 450 points higher to 23,400

Sensex gains 221 points; Nifty 50 rises by 77 points Nifty Midcap 100 surges 450 points; Bank…
Read more
Stock Market

Nifty above 23,400, Sensex up nearly 300 points led by financial and oil stocks

Financial and oil stocks propel Sensex nearly 300 points higher, Nifty above 23,400. IT sector…
Read more
Newsletter
Become a Trendsetter

To get your breaking, trending, latest news immediately without diluting its truthfulness join with worldmagzine immediately.

Leave a Reply

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

CryptoTrending

Ripple CEO Predicts the Crypto Market to Cross $5 Trillion in 2024

Worth reading...