World stock indices fell yesterday. Many investors are closing their positions ahead of the Fed meeting, as there are concerns about changes in monetary policy amid growing inflation. The Fed representatives believe the rise in inflation is temporary, so analysts expect that there will be no change in interest rates. Inflation remains the main topic of discussion.
The S&P 500 index fell by 0.85% on Tuesday, with telecom stocks leading the decline. The Dow Jones index decreased by 0.78%, while the Nasdaq Composite lost 0.56%.
European equity markets traded without dynamics on Tuesday. The German DAX decreased by 0.06%, while the British FTSE 100 even rose slightly. According to GDP estimates, the eurozone economy fell by 0.6% compared to the previous quarter. The reason for the low GDP numbers is the strong restrictions in Europe due to the pandemic. The next quarter should be positive with the reopening of the EU economy.
Against the background of uncertainty in terms of further monetary policy, many investors are shifting their assets to commodity markets. Gold and silver continue to grow.
On Tuesday, oil prices fell due to renewed fears about the demand from Asian countries where Covid-19 cases rose. This refers to India, Taiwan, Vietnam and Thailand. Also, oil prices are under pressure from rising inflation. The US Energy Department will release a report on crude oil inventories today.
The broadest index of Asia-Pacific stocks outside Japan, the MSCI, fell by 0.3%. China’s CSI300 index decreased by 0.1% and Japan’s Nikkei225 lost 1.5%. Hong Kong and South Korea are closed for the holidays.
Main market quotes:
- S&P 500 (F) 4,127.83 -35.46 (-0.85%)
- Dow Jones 34,060.66 -267.13 (-0.78%)
- DAX 15,386.58 -10.04 (-0.06%)
- FTSE 100 7,034.24 +1.39 (+0.02%)
- USD Index 89.80 -0.37 (-0.41%)
Important events:
- UK Consumer Price Index (m/m) at 09:00 (GMT+3);
- Canada Consumer Price Index (m/m) at 15:30 (GMT+3);
- US Crude Oil Reserves (w/w) at 17:30 (GMT+3);
- US FOMC Meeting Minutes Release at 21:00 (GMT+3).
