Mon. Dec 6th, 2021

World shares fell on Tuesday after a fall on Wall Street when traders weighed in on Jay Powell’s nomination for a second term as head of the Federal Reserve and the further rise of coronavirus cases across Europe.

The local Stoxx Europe 600 opened up about 0.9 percent, with benchmarks in Germany and France each falling by about that margin. London’s FTSE 100 fell 0.3 percent.

The S&P and Nasdaq Composite ended the previous day’s session 0.3 percent and 1.3 percent lower, respectively. Technical stocks are thought to be more sensitive to rising interest rates, and the Fed’s policy is expected to be more false with Powell as head of the US Federal Reserve as under his outspoken rival, Lael Brainard, who nominated Biden as vice chairman.

Futures that track Wall Street’s blue-chip S&P 500 index fell nearly 0.4 percent, suggesting that U.S. equities could come under pressure at the New York Open, among other things. Contracts that follow the Nasdaq 100 index fell 0.5 percent.

European equities also closed lower on Monday, after several countries were forced to reinstate pandemic restrictions last week due to the rising number of coronavirus cases. The new curbs led to several protests over the weekend.

Asian markets moved slightly lower on Tuesday, with the MSCI Asia Pacific index down 0.3 percent. Hong Kong’s Hang Seng share price fell 1.1 percent, including through technology and healthcare stocks. China’s CSI 300 was flat, as academic and educational services as well as real estate stocks helped stem the declines in technology and consumer cycle.

In government debt markets on Tuesday, the US 10-year treasury note yield was steady. The yield on the equivalent German Bund was 0.01 percentage points at minus 0.29 percent.

Meanwhile, in currencies, the euro has been trading at near its weakest level against the dollar since July 2020 – 0.2 percent at around $ 1,125.

The Turkish lira hit its weakest point against the dollar on record after the country’s president Recep Tayyip Erdogan praised last week’s interest rate cut of 1 percentage point, saying his country was fighting an “economic war of independence”. Turkey lowered its interest rate to 15 percent last week, despite annual inflation rising to 20 percent.

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