Global stocks mixed after Wall St falls on rate hike worries

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Global stocks are mixed after falling on Wall Street worries the Federal Reserve will raise interest rates as soon as March

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BEIJING – Global stocks were mixed on Monday after falling on Wall Street worries the Federal Reserve will raise interest rates as soon as March.

Frankfurt and Shanghai proceeded. Wall Street futures were higher. Seoul declined while London was little changed. Japanese markets remained closed for the holiday.

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Investors were shocked last week after notes from the Fed’s latest meeting, officials thought the US job market was healthy enough and no longer needed ultra-low interest rates and other incentives.

This was reinforced by US employment numbers on Friday, which showed stronger-than-expected wages, albeit with only half as many hiring as forecast.

Tan Boon Heng of Mizuho Bank said in a report, “The prospect of earlier rate hikes suggests that volatility in the market may continue.”

In early trade, the DAX in Frankfurt rose 0.1% to 15,967.95, while the FTSE 100 in London was little changed at 7,486.65. The CAC 40 in Paris was also flat at 7,220.20.

On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were down 0.1%.

The S&P 500 index slid 0.4% and the Dow less than 0.1% on Friday. The Nasdaq Composite dropped 1%.

In Asia, the Shanghai Composite Index rose 0.4% to 3,593.52 on Monday and the Hang Seng in Hong Kong rose 1.1% to 23,746.54.

In Seoul, the Kospi fell 1% to 2,926.72 and Sydney’s S&P ASX 200 fell 0.1% to 7,447.10.

India’s Sensex rose 0.9% to 60,256.15. New Zealand and Jakarta declined. Bangkok and Singapore went ahead.

Fed officials said in December that investors were cautious that plans to roll back ultra-low rates and other economic stimulus that have boosted share prices are now set to cool US inflation to a four-decade high. can be accelerated.

Investors are pricing better at 79 percent that the Fed will raise short-term rates in March. A month earlier, they saw less than a 39% chance, according to CME Group.

Record-low interest rates have helped prop up stock prices despite unease about the coronavirus pandemic.

The Fed has already slowed bond purchases that were pumping money into the financial system to lower commercial lending rates. Notes from its December meeting indicate that Fed officials may cut such purchases more quickly than previously planned.

In energy markets, benchmark US crude rose 12 cents to $79.02 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 56 cents to $78.90 on Friday. Brent crude, used to gauge international oil prices, rose 16 cents to $81.91 a barrel in London. It fell 24 cents to $81.75 in the previous session.

The dollar rose to 115.74 yen from Friday’s 115.56 yen. The euro declined from $1.1362 to $1.1325.


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