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Global equity markets were blowing slightly on Tuesday following the relaxation in bond markets and ahead of US Central Bank President Jerome Powell’s expected speech on the matter.
On Wall Street, around 7.15 AM, futures Standard & Poor’s 500 The index fell 15 points, or 0.41%, to 3,857 points. Those from Dow Jones It remained stable at 31,466 points, and those special Nasdaq It lost 185 points, 1.4% to 13039 points.
In Europe, the markets were in the red mid-session. in London , FTSE 100 Index It lost 19 points, down 0.3% to 6,592 points. In Paris , CAC 40 And it decreased 6 points, or 0.11%, to 5767 points. In Frankfurt, Dax It fell 151 points, or 1.09%, to 13,798 points.
In Asia, the Tokyo Stock Exchange remained closed Tuesday for a public holiday, however Shanghai The session closed down 0.17% while Hang Seng From Hong Kong it grew 1.03%.
Subject to intense investor interest for several sessions, the 10-year US interest rate fell slightly to 1.37% Tuesday morning, while the German rate fell to -0.31% and the French moved to -0.07%.
These rates rose sharply in the wake of the return of inflationary concerns in the US.
Michael Hewson, chief analyst at CMC Markets UK, said that the US central bank “has made great efforts to reduce expectations of a short-term rate hike, giving the impression that it will ignore the sudden rise in inflation.”
The expert adds: “With the interest rate in the United States over ten years reaching 1.4%, some fear that the Federal Reserve has become a little exhausted about the risks of rising prices,” and he fears that he will subsequently have to raise interest rates in a hurry, the expert adds. .
So the president’s speech on Tuesday to the senators, and then the next day to the elected representatives in the House of Representatives, waits impatiently.
On the European side, the President of the European Central Bank, Christine Lagarde, calmed things down on Monday by making sure that the Frankfurt Foundation closely monitors “the evolution of long-term nominal bond yields”.
Bank of France Governor Francois Villeroy de Gallo said Monday that “there is no risk of rising inflation” in Europe.
In terms of indicators, the UK unemployment rate rose to 5.1% in the three months ending December versus 5.0% at the end of November due to the virus.
On the oil side
Around 7.15 am, it was an American barrel West Texas Intermediate It rose 0.66% to $ 62.11 a barrel Brent In the North Sea it rose 0.6% to $ 65.63.