Global stocks mixed amid concern about interest and energy prices’

(MENAFN– Al-Bayan)

Global stock indices were mixed in trading yesterday, amid increasing concern among investors in the world about the possibility of tightening monetary policy in the United States and anticipation about the pace of raising interest rates and the rise in energy costs, as the American and Chinese stock exchanges declined, while European and Japanese stocks bucked the trend.

On the American “Wall Street” exchange, the Standard & Poor’s 500 and Nasdaq indexes opened lower, and the Standard & Poor’s 500 index opened down 0.38 points, equivalent to 0.01%, to 4,198.74 points, and the Nasdaq Composite Index decreased 8.69 points, or 0.07%, to 12,630.58 points. . The Dow Jones Industrial Average rose 1.65 points to 3,3293.43 points. Federal Reserve Chairman Jerome Powell reiterated the bank’s firm commitment to reining in accelerating inflation, warning that raising interest rates could cause some pain to the US economy. Powell said in his speech at the Jackson Hole Forum in Wyoming that the Federal Reserve will use its tools aggressively to deal with inflation, which is still near its highest level in 40 years.

The Fed Chairman indicated that there is no way to stop tightening monetary policy, although the current interest rates are likely to have reached the neutral level, which does not restrict or stimulate economic growth. The Federal Reserve has raised the interest rate 4 times since the beginning of this year, to reach the range of 2.25% and 2.50%, after it was near zero at the beginning of this year.

“While high interest rates, sluggish economic growth and weak labor market conditions will bring down inflation, they will cause some pain for households and businesses,” Powell added. Much larger”. Investors are awaiting the Federal Reserve’s meeting next September, amid disagreements over the possibility of raising interest rates by 75 basis points for the third time in a row, or just increasing interest rates by 50 points. European stocks rose, as the rise of “Wall Street” supported by technology companies last night, led to the rise of its European counterparts, but sentiment was affected by concerns about the pace of interest rate hikes and higher energy costs. The pan-European Stoxx 600 Index rose 0.4% and is set to end the week down 0.5%. A survey showed that consumer confidence in Germany will hit a record low for the third consecutive month in September as households prepare for higher energy bills, while consumer confidence in France unexpectedly rose in August. Mining stocks rose as copper prices rose on hopes that new stimulus measures from China would boost demand, and technology shares rose 1%.

Japanese rise

Japanese stocks closed slightly higher, after giving up some of their gains in early trading, and the Nikkei index closed up 0.57% at 28641.38 points, after it rose earlier in the session to 28792.93 points. The broader Topix index also gave up some of its early gains to close 0.15% higher at 1979.59 points. The market received support from the rise led by technology stocks in “Wall Street” the day before yesterday, with the decline in the US Treasury bond yields, as many Federal Reserve officials were conservative about the rate of interest rate hike that they will agree to in their meeting next month.

The Nikkei recorded a weekly decrease of 1% after rising for 3 weeks. Among the 225 stocks listed on the Nikkei index, 134 rose, compared to 83 decreased, and 8 remained stable. Industrial stocks recorded the best performance, followed by basic materials and technology stocks, while energy stocks were the biggest loser after the drop in crude oil prices last night.

Chinese stocks closed lower despite the measures taken by the government to revive economic growth. In the context of the Sino-American crisis, the United States suspended 26 flights that were en route to China in response to the Chinese government’s decision to suspend some flights of American airlines due to Covid-19 injuries. The “Shanghai Composite” index closed down by 0.31% to 3236 points, recording a weekly loss of 0.67%. The “CSI 300” index fell slightly by 0.21% to 4107 points, and the “Shenzhen Composite” decreased by 0.42% to 2146 points.

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