European, Asian and Gulf stocks fell today, Wednesday, to catch up Wall Street losses Sharp after US inflation data is higher than expected, reinforced expectations of a larger interest rate hike in the Federal Reserve (the US central bank) next week.
All Gulf market indices fell in trading today, Wednesday, as the Saudi stock market index fell 1.12%, to 11,949 points.
The Dubai Financial Market index declined 1.04, to 3421 points, the Abu Dhabi market index 0.18%, to 9,968 points, and the Kuwait Stock Exchange index, 0.34%, to 8,460 points.
The Muscat Stock Exchange index fell 0.14%, the Bahrain market index 0.01%, and the Qatar Stock Exchange index 1.96%, to 13,054 points.
Japanese stocks suffered their biggest drop in three months on Wednesday, tracking Wall Street’s overnight losses, while reports of the Bank of Japan’s apparent intention to intervene in the currency market weighed on sentiment.
The Nikkei index fell 2.95% shortly after the opening and closed down 2.78% at 27,818 points, after the Nikkei newspaper reported that the Bank of Japan conducted an interest rate check in a clear prelude to intervention in the currency market amid sharp declines in the value of the yen.
The broader Topix closed down 1.97%, its worst day since June 13.
In European markets, the Stoxx 600 index fell by 0.3%, by 07:14 GMT, and the technology sector index fell 0.4%. The banking sector index rose 0.1%.
Tuesday’s data revealed that consumer prices in the United States increased more than expected in August, and the Federal Reserve is expected to raise interest rates by 75 basis points for the third time next Wednesday.
The index of retail companies jumped 2.3%, and the sector was the highest, after the share of Inditex, the Spanish owner of the Zara brand, rose 5%. The Spanish index rose 0.3%, and was among the few bullish indicators in Europe.
Inditex reported a 24.5% jump, in six-month sales and year-over-year earnings, to end July on a strong note before apparel demand began to weaken last month due to rising inflation.