Global Stock Markets Continued Decline this Week

Global stock markets continued this week’s decline. Investors aggressively bought government bonds and gold to seek safety. The dollar was strong and refreshed to a 7-year high. Today, the US non-farm payrolls report for February will be released.

As of press time, Dow futures fell 0.8%, S&P 500 futures fell 0.8%, and Nasdaq futures fell 0.8%.

Britain’s FTSE 100 fell 3.3%, Germany’s DAX fell 3.4% and France’s CAC-40 fell 3.4%.

The dollar rose, the euro fell. The euro fell to a seven-year low against the Swiss franc on Friday and its lowest level against the dollar in nearly two years as the war in Ukraine lowered expectations for European growth. The single European currency fell 2.1% this week, putting it on track for its worst week since April 2020.

Oil prices recorded their biggest weekly gain in nearly two years. Brent crude oil is currently trading above $111 and U.S. WTI crude oil is trading around $109. U.S. crude oil rose 18% this week, and Brent rose 14%. hit a 10-year high.

The Morgan Stanley (87.78, -0.60, -0.68%) Capital International All Country Index fell 0.6% to 686 points, down about 10% this year.

Policymakers at their February meeting believed the ECB was close to raising interest rates for the first time in more than a decade as inflation showed signs of taking hold, minutes of the ECB’s Feb. 3 meeting released on Thursday showed. But analysts at ING (10.89, -0.14, -1.27%) group believe that any hint of a rate hike is unlikely at next week’s European Central Bank meeting.

Investors are also awaiting the non-farm payrolls report for clues on the outlook for monetary policy. Earlier, Federal Reserve Chairman Jerome Powell reiterated on Thursday that the central bank will start a series of interest rate hikes to curb inflation.

Economists expect the U.S. will add 440,000 jobs this year and the unemployment rate will drop to 3.9 percent. Hourly wages are expected to rise 5.8% year over year. This is the last jobs report before the Fed’s next meeting, where it is expected to start raising interest rates. Federal Reserve Chairman Jerome Powell said on Wednesday that he favored a quarter-point rate hike in March. One basis point equals 0.01%.

Broadcom rose nearly 3% before the market, Q1 revenue increased by 16% year-on-year, and Q2 revenue guidance exceeded market expectations.

Costco fell nearly 3% before the market, and Q2 same-store sales growth slowed to 14.4%.

Marvell Technology fell 2.88% before the market, and its Q4 net profit fell to US$6.17 million year-on-year.

Gap rose 7.44% before the market, and its 2022 performance guidance exceeded expectations.

*Editor’s note: This article is for reference only and does not constitute an offer, solicitation or invitation, inducement, any representation of any kind or form, or any suggestion or recommendation. Readers should use their independent thinking skills to make their own investment decisions , If any loss is incurred due to relevant suggestions, it has nothing to do with “istanbulpost.com.tr”, the editor and the author.

Reviewer overview

Global Stock Markets Continued this Week's Decline - /10

Summary

Global stock markets continued this week's decline. Investors aggressively bought government bonds and gold to seek safety.

0 Bad!