The MSCI International Equities Index fell the most in the first half of the year since the beginning of Thursday, while the US benchmark S&P 500 fell the most in the first six months since 1970.
Behind the slides have been concerns about the war between Ukraine and Russia, enormous inflation, higher interest rates and the recent possible recession in the United States.
The yield on the Treasury bond has risen by 150 basis points so far this year, the largest increase in the first half of the year since the first six months of 1994.
The Ministry of Commerce’s report added to the frustration on Thursday, which showed that US consumer spending rose less than expected in May.
Although the report indicated that inflation was likely to peak, inflationary pressures were still strong enough to leave the US Federal Reserve on an aggressive path to tighten its policy.
“Inflation is not something we do not have to worry about anymore. It is expected to be with us for some time, “said Sam Stovall, CFRA’s Chief Investment Officer in New York.
Governors from the central bank, the European Central Bank and the Bank of England met in Portugal this week and announced their renewed commitment to curbing inflation, no matter what pain it caused.
The Dow Jones industrial average fell 253.88 points, or 0.82%, to 30,775.43, the S&P 500 was down 33.45 points, or 0.88%, to 3,785.38 and the Nasdaq Composite was down 149.16 points. or 28.16 points, or 28.13%, 0.88%
Since the beginning of the year, the S&P 500 has fallen by 20.6%.
The pan-European STOXX 600 index decreased by 1.5% and the MSCI measure of equities worldwide decreased by 1.12%.
The MSCI International Equity Index decreased by 20.9% in the first half of 2022.
The central bank’s skepticism and investors’ desire for liquidity in difficult times have helped support the US dollar.
The US dollar index rose by 6.5% during the quarter and is the largest quarterly jump since the last quarter of 2016.
The index has risen by 9.4% so far this year.
On Thursday, the dollar index fell by 0.343% and the euro fell by 0.01% to 1.0481 dollars.
Bitcoin last fell 5.92% to $ 18,904.06.
Treasury yields fell for the third day in a row on Thursday as investors continued to worry about a possible contraction in the United States.
Yields on 10-year Treasury bonds fell by 10.4 basis points to 2.989%, as purchases of safe havens in the long run pushed prices up and fell.
Oil prices fell by 3% today.
OPEC + confirmed that it would only increase production in August as much as previously announced, but made investors think about future production.
Forward Brent crude for delivery in September was down $ 3.42, or 3%, to $ 109.03 a barrel.
The August contract, which expires on Thursday, fell by 1.45 dollars, or 1.3%, to 114.81 dollars a barrel.
Futures trading in crude oil in the United States decreased by 4.02 dollars, or 3.7%, and amounted to 105.76 dollars.
Spot gold fell 0.5% to $ 1,807.21 an ounce.
MSCI international stock index declines the most in the first half of history – SABC News
Source link MSCI international stock index declines the most in the first half of history – SABC News