Following the release of US inflation data, global equities were mixed.
Following the release of vital US inflation statistics on Wednesday, world stock markets were divided as investors waited to see what impact it would have on the Federal Reserve’s intentions to tighten monetary policy.
Traders were waiting for the minutes from the Fed’s most recent meeting to be released, as well as the start of the US earnings season, as fears of a worldwide oil shortage continued to weigh on confidence.
“Today, all eyes are on the US CPI inflation statistic, the minutes from the Fed’s latest meeting, and the start of earnings season with JPMorgan’s numbers due out,” Markets.com analyst Neil Wilson said.
“The Fed minutes will reveal how much inflation is a concern — we know the taper is on the way; the question is how soon the Fed moves to contain inflation by hiking rates.”
Inflation stayed at a high 5.4 percent in September, according to US Labor Department data, compared to the same month last year.
With the world’s largest economy on the mend, the Federal Reserve of the United States has already indicated that it will begin to phase down the substantial financial aid provided at the outset of the pandemic.
However, supply chain bottlenecks, skyrocketing demand fueled by reopenings, and rising fuel costs have pushed inflation to new highs in recent months, putting pressure on bank CEOs to act to keep prices from spiraling out of control.
Long periods of higher-than-targeted inflation are raising anticipation that the Fed will have to raise interest rates after its mammoth bond-buying program is completed.
In Europe on Wednesday, by mid-afternoon, London stocks had returned to positive territory. The UK economy grew by 0.4 percent in August compared to July, according to previous data.
Frankfurt’s main stock index rose 1.0 percent, while Paris gained 0.7 percent in the eurozone.
Concerns over a worldwide energy shortage jangled nerves, and Asian markets were mixed as well.
Tokyo, Sydney, Manila, and Taipei all fell, while Seoul, Singapore, Mumbai, Jakarta, and Wellington all rose. The city of Hong Kong was closed due to a typhoon.
Shanghai gained amid better-than-expected export statistics and ahead of China’s inflation data on Thursday.
New York – The Dow Jones Industrial Average is down 0.3 percent at 34,275.86 points.
The FTSE 100 index in London is up 0.1 percent to 7,139.78.
DAX is up 1.0 percent to 15,296.21 in Frankfurt.
CAC 40 in Paris is up 0.7 percent at 6,593.61.
EURO STOXX 50: 4,092.47, up 0.9 percent.
Nikkei 225 in Tokyo is down 0.3 percent at 28,140.28. (close)
Shanghai’s Composite Index is up 0.4 percent. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.