[ad_1]
Find out what clicks on FoxBusiness.com.
Global stocks and US futures fell on Monday after Wall Street ended last week with a further drop.
Many markets in Asia have been closed for the holidays, and analysts have said low trade volatility is adding to the volatility. Shares fell more than 2% in Paris and Frankfurt, while the benchmark Hong Kong index fell 3.3%.
Investors are watching to see if the Federal Reserve will take action to deal with the impact of rising prices on businesses and consumers.
INVESTORS LOOKING FORWARD TO THE ANNOUNCEMENT OF THE FED TAPERING
Traders Peter Tuchman, left, and Patrick Casey work on the floor of the New York Stock Exchange on Thursday, February 8, 2018. (PA)
Concerns are also growing about the US debt ceiling. House Democrats said on Friday they plan to decide this week to suspend the government’s borrowing power cap, and the White House has stepped up pressure on Republicans by warning state and local governments of severe cuts were to come if the measure failed in the Senate.
The German DAX lost 2.1% to 25,163.25 and the CAC 40 in Paris lost 2.3% to 6,419.61. The UK FTSE 100 lost 1.4% to 6,866.39.
The future of the S&P 500 fell 0.3% while the Dow industrial contract fell 1.3%.
The yield on the 10-year Treasury bill slipped to 1.34% from 1.38% on Friday.
Large real estate companies and Hong Kong banks lost ground amid lingering concerns about the potential spillover effects of Chinese developer Evergrande’s financial woes.
The company was expected to pay no interest as rating companies predict it could default on its debt. Its shares fell 10.6% on Monday.
Henderson Land Development fell 13% and New World Development lost 12% amid reports that China would step up oversight of the real estate sector in Hong Kong.
Hong Kong’s Hang Seng lost 821 points to 24,099.14. The Australian S & P / ASX 200 lost 2% to 7,248.20. Markets were closed in mainland China, South Korea, Japan, Taiwan and Malaysia.
TIKTOK MAKER CAPTURES SCREEN TIME FOR YOUNG PEOPLE IN CHINA
“Asia is off to a nervous start today with seriously depleted holiday cash flow,” Oanda’s Jeffrey Halley said in a comment. “The list of sharks going around in circles is long, starting with the growing rumor from the United States about the debt ceiling.”
The Fed is due to release its latest update on economic policy and interest rates on Wednesday. The central bank said higher costs for raw materials and consumer goods will always be temporary as the economy recovers, but analysts fear higher prices will persist and hurt corporate results while slashing prices. expenses.
Wall Street finished last week on a low note, with the S&P 500 Index losing 0.9% to 4,432.99, its second consecutive weekly loss.
The Dow Jones Industrial Average fell 0.5% to 34,584.88 and the Nasdaq fell 0.9% to 15,043.97.
The Russell 2000 Small Business Index recovered from an initial decline, rising 0.2% to 2,236.87.
In Monday’s other trading, US benchmark crude oil fell 92 cents to $ 71.06 a barrel in electronic trading on the New York Mercantile Exchange. On Friday, it fell 64 cents to $ 71.97 a barrel.
Brent crude, the standard for international prices, fell 77 cents to $ 74.57 a barrel.
CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS
The US dollar slipped to 109.74 Japanese yen from 109.95 yen. The euro fell to $ 1.1711 from $ 1.1731.
[ad_2]
Source link