[vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”administrator,editor,author,armember”][vc_column][vc_column_text]
After last week’s mini stock market crash, the financial landscape has not improved much around the world.
Tightening monetary policies and tighter health restrictions in China continue to fuel fears of a global economic slowdown, adding to investor caution.
China
Asian markets are weighed down by stagnant exports and China’s imports slowing to their slowest pace in 20 years amid a near paralysis of the economy due to tighter health restrictions. In addition, exports grew at their slowest pace in almost two years in April (+3.9%) and the confinement of Shanghai is heavily penalizing economic activity.
Prime Minister Li Keqiang also warned about the labor market situation, which he described as “complicated and serious“. In Tokyo, the Nikkei 225 closed down 2.5%, while the Chinese CSI 300 folded 1.1% near the close.
United States
On Wall Street, the Dow Jones ended Friday its sixth consecutive week of decline, while the S&P 500 and the Nasdaq Composite suffered their fifth straight weekly decline, the longest declines in more than 10 years. The U.S. Federal Reserve announced on Wednesday a 50 basis point increase in interest rates in an attempt to curb inflation, the highest in 40 years. In the bond market, the yield on the U.S. 10-year bond closed at 3.1265% on Friday, the highest in four years.
Faced with this worrying outlook, investors prefer to fall back on safe havens: Food companies Campbell Soup and General Mills are benefiting from the technology rout in the US. Indeed, technology stocks, which had been the strongest performers over the past year, are now being neglected. The world’s largest technology companies have lost more than $1 trillion in three trading sessions. Since last Wednesday, Apple has lost $220 billion in capitalization, Tesla $199 billion, Microsoft $189 and Amazon $173.
These shocks are also particularly intense at the highest level of the world’s wealthiest companies. In the last three stock market sessions, the world’s four largest fortunes have together lost some $75 billion.
Europe
In the eurozone, money markets are anticipating a hike of nearly 95 basis points in the European Central Bank (ECB) deposit rate by the end of 2022. Yesterday, European markets closed sharply lower, following Wall Street. The CAC 40 gave up 2.75% to 6,086 points. The Euro Stoxx 50 lost 2.6% to 3,535.46 points.
In addition, no sector of the Stoxx 600 escaped the decline in equity markets, with basic resources (-3.2%), energy (-4.6%) and new technologies (-3.5%) showing one of the largest declines against a backdrop of falling iron ore prices, fears about the situation in China and rising bond yields.
The luxury groups, very dependent on China, have also suffered the blow, like Kering (-3.3%), LVMH (-3.4%) or Richemont (-4%).
But the European equity markets could rebound at the opening this Tuesday morning after four consecutive sessions of decline. However, volatility will remain the order of the day as no catalyst seems likely to reassure investors in the short term. The Fed has no choice but to tighten its monetary policy in an attempt to curb runaway inflation, which is costly for American households. In this respect, the April inflation figures in the United States are eagerly awaited in order to make short and long-term forecasts.
Read also> STOCK MARKET: THE REASONS FOR THE “MINI-CRASH” OF THE FINANCIAL MARKETS
Featured photo : © secureservercdn.net[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
After last week’s mini stock market crash, the financial landscape has not improved much around the world.
Tightening monetary policies and tighter health restrictions in China continue to fuel fears of a global economic slowdown, adding to investor caution.
China
Asian markets are weighed down by stagnant exports and China’s imports slowing to their slowest pace in 20 years amid a near paralysis of the economy due to tighter health restrictions. In addition, exports grew at their slowest pace in almost two years in April (+3.9%) and the confinement of Shanghai is heavily penalizing economic activity.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo : © secureservercdn.net[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”subscriber,customer”][vc_column][vc_column_text]
After last week’s mini stock market crash, the financial landscape has not improved much around the world.
Tightening monetary policies and tighter health restrictions in China continue to fuel fears of a global economic slowdown, adding to investor caution.
China
Asian markets are weighed down by stagnant exports and China’s imports slowing to their slowest pace in 20 years amid a near paralysis of the economy due to tighter health restrictions. In addition, exports grew at their slowest pace in almost two years in April (+3.9%) and the confinement of Shanghai is heavily penalizing economic activity.
[…][/vc_column_text][vc_cta h2=”This article is reserved for subscribers.” h2_font_container=”tag:h2|font_size:16|text_align:left” h2_use_theme_fonts=”yes” h4=”Subscribe now !” h4_font_container=”tag:h2|font_size:32|text_align:left|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE !” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Ftest2023.luxus-plus.com%2Fen%2Fsubscriptions-and-newsletter-special-offer-valid-until-september-30-2020-2-2%2F”]Get unlimited access to all articles and live a new reading experience, preview contents, exclusive newsletters…
Already have an account ? Please log in.
[/vc_cta][vc_column_text]Featured photo © secureservercdn.net[/vc_column_text][/vc_column][/vc_row]
