Inflation, energy and the upcoming tapering sank the markets

The ongoing tightening of monetary policy by the world’s major central banks creates a suffocating environment with increased chances of development leading to a major mix of crisis and recession.

In addition, Joe Biden’s uncertainty about fiscal position directs investors to the security of fixed-income government bonds.

America

The 10-year T Bond has a yield of 1.54%. The S&P lost – 2.04% closing at 4352 points on Tuesday 28/9 of 2021. The Nasdaq closed at 14546 points with a loss of 2.83%.

EMEA

European indices also showed losses, reflecting concerns about both rising US bond yields and rising energy costs.

The FTSE100 closed at 7028 points minus 0.50%. DAX closed at 15248 points minus 2.09% and CAC40 fell 2.17% closing at 6506 points.

The yield of the ten-year Bund reached -0.181%. The yield on the corresponding Italian 10-year Italian bond increased to 0.853%. The same thing happened with the respective 10-year government bonds of France and the Netherlands.

APAC

Asianmarkets in their attempt to assess the rise in oil prices and China’s declining GDP followed mixed trends. Hong Kong’s Hang-Seng rose 1.46%, while Shanghai Composite gained 0.53% with the Shenzhen component closing 0.1% higher.

The Kospi100 fell 0.87% while the Nikkei 225 and Japan’s Topix fell 0.4% and 0.53% respectively.

In a broader context, markets are now beginning to voice their concerns about rising oil, gas and coal prices used for electricity generation.

An increase in one form of energy causes an increase in the other forms of energy. Crude oil prices exceed $ 80 a barrel due to increased demand.

 

 

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TRUST ECONOMICS

Trust Economics is a specialized independent economic research, analysis and consultancy business. Our team provides ingenious analysis in the macro & micro economic field, in the field of financial market, regional and sectoral analysis equally, forecasts, consultancy, specialized studies-research/projects from its headquarters in Athens, Greece.

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