Global stocks fall after Federal Reserve policymakers weighed on optimism

Written by Amanda Cooper

LondonJan 10 – Global stocks fell on Tuesday as investors reaped the gains of the past two weeks after comments from two Federal Reserve officials added a note of caution in the outlook for US interest rates. The United States, which affected stocks, commodities and other risky assets.

* Overall average of MSCI And it fell 0.1 percent, but settled near its highest level in three weeks, which it recorded on Monday, while the dollar An indicator of investors’ willingness to take risks It was stable against a basket of six currencies.

* In the past six weeks, China has eliminated “zero” Corona virus diseasewhich has caused a surge in cases across the country and turmoil in markets, as investors weigh the economic benefits of reopening against the impact of a wave of infections on activity.

* To this is added optimism that inflation has peaked, especially in the United States, and therefore the Federal Reserve will not have to raise interest rates as many fear.

* However, with consumer price pressures still well above the central bank’s 2% target, two Federal Reserve officials reminded Monday that interest rates must continue to rise, regardless of what investors have calculated.

* San Francisco Fed President Mary Daly told the Wall Street Journal that she will be paying close attention to Thursday’s data and that both 25 and 50 basis point hikes are her options. For his part, Atlanta Fed Chairman Rafael Bostick stated that his “basic assumption” is that there will be no interest rate cuts this year or next.

* Consumer price data, due for release on Thursday, is expected to show headline inflation slowing to 6.5% in December from 7.1% in November.

* In Europe, stocks opened in the red. the Stokes 600 fell 0.7% after hitting an eight-month high on Monday. the FTSE The London 100 fell 0.3%, while the London 100 fell Dax Frankfurt fell 0.5%.

* US stock index futures fell 0.1%, indicating that Wall Street may open lower.

* The dollar index declined by 0.21%. The euro rose 0.1 percent, while the pound fell 0.1 percent. And the yen increased 0.1% against the dollar, at 132.04 units against the dollar, after knowing the rise in inflation in Tokyo, which may prompt the Bank of Japan to tighten its monetary policy.

Copper futures on the London Metal Exchange fell 0.9% to $8,785 a ton, after hitting their highest level in more than six months on Monday, while aluminum and zinc fell between 1% and 1.4%.

* Brent crude futures fell 0.6 percent to $79.16 a barrel. The price of oil is down 2.3% from a year ago and 45% below the highs of $139 reached after Russia’s invasion of Ukraine in February.